US-based crypto exchange Kraken just released a report for its VIP traders to the public. The new outlook suggests Bitcoin (BTC) may be on the brink of a major breakout that would finally put an end to the two-year bear market.
The document tracks the largest cryptocurrency’s movement inside a large bullish pennant since 2017. Kraken says Bitcoin is in a solid position to break out of the pattern and ignite a new bull cycle.
“Because Bitcoin has been trending sideways for two months and remains a +10% jump short of breaking resistance, many market participants believe that Bitcoin is set to move considerably higher. This belief is also predicated on the fact that Bitcoin’s 50-week moving average continues to prove as ironclad support.”
Before bulls can claim control of the BTC market, Kraken says breaching the long-term diagonal resistance is just the first step.
“Before Bitcoin can confirm a successful breakout and invalidate what has been a multi-year macro downtrend, Bitcoin will need to climb past $10,500 to set a higher-high and trigger an uptrend.”
But Kraken warns that the leading cryptocurrency is not yet out of the woods. A 35% move down from the current price of about $9,255 is within the realm of possibility.
“Bitcoin will need to soon decide whether to break through resistance and embark on a bull-cycle or revisit support at roughly $6,000 – $7000.”
You can read the full report here.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Boris Rabtsevich