FX.co ★ Bitcoin downside invalidated, upside reversal favored

Bitcoin rallied today. At the moment of writing, it was traded at 40,465.70 below 40,694.23 daily high. BTC/USD registered a 12.21% growth from 36,264.55 yesterday's low to 40,694.23 today's high. Technically, the crypto moved somehow sideways in the short term being undecided.

BTC/USD invalidated a potential new sell-off and now it has ignored the immediate resistance levels signaling potential upside reversal. The current rally helped the altcoins to turn to the upside as well. Bitcoin surged by 23.50% from 32,950.72 low but we still need strong confirmation that the crypto will develop a bullish reversal.

BTC/USD upside breakout

If you remember from my previous analysis, a valid breakdown below the weekly pivot point (36,600.08) may activate more declines. As you can see, BTC/USD registered only false breakdowns below the pivot point indicating that the bulls' area is still in the game.

BTC/USD ignored the near-term static resistance levels. At the moment of writing, it was traded above the Descending Pitchfork's upper median line (uml) which represents a dynamic resistance and above the weekly R1 (40,280).

Bitcoin prediction

Validating the breakout above the R1 and above the upper median line (uml) could really announce potential further growth and could bring new long opportunities.

You should be careful because if the price invalidates the breakout, BTC/USD is likely to print a new sell-off.