The Bitcoin bulls are currently helping the $BTC price to drill through the important $113,000 horizontal resistance level. If this level can be surpassed and confirmed as support, the next task would be to break out of the ascending channel formation, and make a higher high beyond $117,400. $BTC changing back to bullish mode We are only 9 days into September and that is also the time since the $BTC price switched into bullish mode. The descending channel that encompassed the price since its all-time high of $124,000 was only 18 days long, but for many it seemed like an eternity, and for some it was as if Bitcoin had been to the top and that now it was going to descend into a huge correction, or even into a bear market. Of course, one only has to remember that monetary easing is ongoing across the world and that the US will potentially be entering a rate cut cycle as soon as next week. At least for the next several months Bitcoin is likely to be in a benign monetary environment. Will it make hay? $BTC meets important $113,000 horizontal resistance Source: TradingView The 4-hour chart for $BTC illustrates how the bulls are attempting to drive the price through the important $113,000 resistance level. Looking left, it can be seen how this horizontal level has formed the strongest resistance over the last couple of weeks. If this level can be overcome and flipped into support, the next target would be a breakout of the top of the ascending channel. Ascending channels break down the majority of times, so an upside break would be very bullish. Next would be a higher high above $117,400, and if this could be confirmed above, $120,000 would be the only barrier before the all-time high. Of course, this is all conjecture and each stage has to happen before it can be taken seriously. That said, the main thing to consider is that a minor trend change could be about to take place. This would occur if the price gets above $113,500. Failure to do this could result in a failed rally and potentially more time spent chopping sideways. Inverse head and shoulders pattern reaches neckline Source: TradingView The daily chart reveals that the $BTC price was able to surmount the hefty double challenge of the $112,000 horizontal level and the 100-day SMA (green line). These have now been turned into support. A formation that can be seen to be relevant now is an inverse head and shoulders pattern. The neckline for this also happens to be the $113,000 horizontal resistance, so this puts even more on the line for a breakout or rejection. Next solid bull market stair step is forming Source: TradingView The weekly chart view for $BTC shows that the current rally is firmly based off of the $108,000 horizontal support. This is now becoming the next stair step from which this bull market can advance. Even if there is a rejection from the current resistance level, the price can still come back to the $108,000 support if necessary. That scenario probably isn’t favourite right now, but this will depend on whether the bulls can push the price past the resistance. The Stochastic RSI indicators are still shaping to cross back up. This would certainly favour a new all-time high if this happens. On the other hand, right at the bottom of the chart, the MACD indicators are still crossed down and the columns on the histogram are still red. That said, this is quite a lagging indicator, and so a change back towards a more bullish outlook could begin next week. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
