Did Bitcoin Just Breakout? This Is The One Chart You Need To See

I like charts simple. If you put enough lines on a chart you can make a case for anything, so the simpler, the more emphatic, the better.

Here is the bitcoin (BTC) chart:

This is mouth-watering for anyone that looks at charts in the hope of seeing the future. It’s a textbook breakout. A breakout means a big move up for bitcoin and with holders awaiting the fabled move above $100,000, a real breakout is a very big deal.

So here is a way of looking at this configuration:

Let me translate. The long-term trend has been bearish with the cycles showing bearish sub-trends. The latest cycle, however, has been bullish because it is sliding up in a bullish tendency.

You can forget all that though, because the price has broken up through the ceiling of the long-term trend and that classically means we are going to reprice a lot higher. I could draw a lot of lines saying where this could go but that’s secondary to it actually kicking off a breakout where pretty much anything that happens next is going to be good news. Of course I’ll do that in another piece, but let’s keep it simple. The simplest question is markets and the most important is, is the asset going up or down, and this is the only call worth making for bitcoin right now and the charts says “Yes.”

This is 101 technical analysis. But wait! It’s very early days if this is the breakout we have all been waiting for and nipping a tiny amount above a trend ceiling is not a guarantee. This is the “Get Ready” and if you are aggressive “Get Set” moment before the pistol “Go!”

A high chance that the next leg up has started is in place, and these probabilities will rise if this move continues upwards on the same trajectory. Trading and investing is a game of balancing risk with rewards and as uncertainty diminishes so the risk/reward relationship shifts hopefully in your favor.

I covered this set up a few days ago when we were approaching a “Get Set” situation but the recent moves have lifted the odds of a real break out to a point where it’s time to get focused on what you are going to do if we do head to new levels. You can read what I said here.

I think if we do break up further, especially and if we clear the all-time recent high, we will get a significant move which of course suggests $100,000 and more.

While the catalyst might not be apparent until later, the outcome is going to crystalize imminently. A reversion to the trend is always way more likely that a proper breakout, but the current configuration is about as promising as they come.

I only hold crypto at present because of the potential of another leg up so to me and to many others, staking out bitcoin for the next move up is what holding is all about.

To finish, take a look at MicroStrategy (MSTR). Do the investors who are pushing this know something about bitcoin we don’t?

Now there is a really emphatic breakout.

Disclosure: I own bitcoin and other cryptocurrencies.