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The wait for Bitcoin’s next move is nearly over after weeks of sideways choppy trade. The largest crypto by market cap has been stuck below $20.5k for the last month while support around $18k-$18.3k has held firm. In common with other risk markets, Bitcoin had a wild ride post-US CPI, falling quickly to support before reversing sharply higher to tag $20k earlier today.

Last week we identified that Bitcoin was nearing the apex of the multi-month downtrend and medium-term support. This may break soon.

The daily BTCUSD chart is now showing a small break above the downtrend, triggered by yesterday’s rally. This break higher needs to be confirmed over the next couple of sessions to bring initial resistance at $20.5k into play. Above here, prior highs at $22.8k and $25.3k will draw attention.

While yesterday’s move higher may provide reasons for traders to be optimistic, a move back below the downtrend would very likely see Bitcoin break multi-week support and fall further. Bitcoin has been very quiet over the last few weeks and any break of support may see a sharp move lower as traders throw in the towel. Either way, expect Bitcoin volatility to increase in the days ahead.

(Click on image to enlarge)

Chart via TradingView

What is your view on Bitcoin – bullish or bearish?

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