Downtrend Breakout Confirmed
The Bitcoin (BTC) price broke beyond its downtrend line on Tuesday, with this breakout receiving confirmation on Thursday. If Bitcoin maintains its current buoyancy, this could signal a reversal of the established trend, potentially leading to price targets ranging from $120,000 to $150,000.
The daily chart illustrates the Bitcoin price's successful breach of the downtrend line, followed by a retest to confirm the breakout. While there remains a low probability that bears could push the price back below the trendline and into the falling wedge pattern, the current momentum suggests otherwise.
Observing the bottom of the chart, the Relative Strength Index (RSI) indicator line is tracking an uptrend. A breach of this indicator line below its uptrend would serve as a warning signal, potentially indicating a similar downward movement in price action, and therefore warrants close monitoring.
A more probable scenario involves both the price and the indicator line bouncing off their respective trendlines, propelling the price back towards the top of the channel. The Bitcoin price has a major trendline situated not far below its current position, suggesting that any rapid downward price movements are likely to be arrested at this level.
BTC Price Targets
The weekly chart provides insights into potential targets for the Bitcoin price once the current breakout gains further momentum. The last significant resistance level before potentially revisiting all-time highs is identified at $119,400. Additionally, a target of $154,500 aligns with the 1.618 Fibonacci extension level.
At the lower portion of the chart, the Stochastic RSI indicators represent a key asset for Bitcoin bulls. Both indicators are trending upwards and approaching the 20.00 level. Once they surpass this critical trigger point, substantial upside price momentum is expected to materialize, contributing to the price's return to its previous highs.
BTC/Gold Trend Poised for Reversal
Gold has experienced a period of strength since its breakout in the first quarter of 2024, resulting in a 112% increase to date. In its performance against Bitcoin, Gold has significantly outperformed, surpassing the leading cryptocurrency by 42% since August of this year and by 48% when comparing from the end of 2024 to the present.
However, this trend may be on the verge of a shift. The BTC/GOLD ratio has retraced to the 0.618 Fibonacci level and, with the exception of brief candle wicks extending below this point, the ratio is currently holding firm. Considering that the Stochastic RSI indicators are positioned at the bottom across the weekly, 2-week, and monthly time frames, it is anticipated that Bitcoin is now set to outperform. Observers should watch for this ratio to begin turning in favor of Bitcoin going forward.