Bitcoin has broken out from its bull flag and is surging up towards the all-time high at $123,200. Currently at a price of around $122,000, it probably won’t be long before the high is broken. Is $130,000 likely to be the next pitstop? It’s been a while coming, but it does finally look like Bitcoin is on its way again. The king of the cryptocurrencies spent just short of 4 weeks inside a bull flag before breaking out and confirming the breakout on Sunday. Currently surging higher, Bitcoin has the formality of breaking past its all-time high and launching into price discovery once again. Strong $BTC breakout on 4-hour chart Source: TradingView Looking at the $BTC price on the short-term 4-hour chart it can be observed that the breakout is strong and as far as price action is concerned things appear to be going to plan for the bulls. However, the indicators at the bottom of the chart are signalling that the gas tank is starting to empty. That said, the Stochastic RSI indicators can probably continue as they have been doing since the price dropped to the low, while the RSI indicator still needs to climb above the last high at 85.21 in order to avoid bearish divergence. Daily RSI signals more upside price action Source: TradingView In the daily time frame the RSI illustrates two key signals for the last two breakouts. Looking left to the previous bull flag it can be seen how the low in the RSI matched the low in the price action, and also how the breakout and confirmation of the descending trendline matched the initial surge in the price action. As can be observed above, the same thing has now just taken place for this current bull flag. It might be expected that the indicator line travels back into the overbought territory like it did before, signalling more upside for the $BTC price action. $BTC embarks on its journey to $150,000 Source: TradingView The weekly chart reveals the inverse head and shoulders pattern that appears to be playing out nicely. The price broke through the neckline of the pattern, returned to confirm the breakout, and is now rising higher. The measured move for this pattern is pretty much exactly $150,000. $130,000 could just be the next pitstop on the way. At the bottom of the chart, the Relative Strength Index (RSI) shows how the indicator line is rising to meet the descending trendline once again. This would be a very good time for the indicator line to finally breach the downtrend. If it does so, expect a decent surge in the price action above. That said, the indicator line will need to continue up and get above the last high at 88.40 in order to avoid bearish divergence. 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.
