This Unique Perspective on Bitcoin Charting Makes Bull Breakout Clear As Day

Tony "The Bull" Severino

5 years ago

3 mins read

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Switching Bitcoin price charts from one type to another gives a clear as day look at what appears to be a full-blown breakout into a bull market.

Better yet, the price action also shows a retest of downtrend resistance turned support, which could act as a launchpad for the cryptocurrency.

Understanding Technical Analysis, Trend Lines, Subjectivity, and Bias

Reading through Bitcoin-related subreddits or glancing through crypto Twitter comments reveals a strong disbelief in technical analysis.

Some argue that drawing lines on charts is a senseless practice, and price action will do whatever it wants regardless. It’s not possible to predict the future, but technical analysis supplies traders and analysts with probabilities at which they can build a strategy around.

Technical analysis is a highly subjective practice, clouded by bias. With enough scouring, any preconceived bias can find support through indicators, oscillators, or trend lines.

Drawing trend lines alone can be highly subjective when charting Bitcoin. Valid trend lines have the most touches, that analysts agree on.

However, some chartists cut wicks, drawing lines across candle bodies only, while others draw lines across wicks themselves. Others, use a combination of the two – usually to fit their own personal bias.

But not all Bitcoin price charts are candlesticks. There are also Renko, Heikin Ashi, Point and Figure, and many more types of charts, that can supply analysts with unique intel about the market.

Line charts are one of these types of charts some analysts rely on to provide a unique perspective on price action. Without wicks, line charts can make breakouts appear that much more clear.

An updated line chart of Bitcoin price action on weekly and monthly timeframes appears to indicate that Bitcoin has broken out from downtrend resistance. Even more bullish yet, the asset also may have completed a retest of resistance turned support.

BTCUSD Weekly Line/Candlestick Comparison | Source: TradingView - Click Here For Full Size

Bitcoin Price Line Chart Shows Full-Blown Breakout Into Bull Market

As explained above, some traders choose to draw trend lines across candle bodies, while others prefer wicks. Switching from a Japanese candlestick chart to a line chart can help provide additional clarity.

The above comparison chart shows the significance of switching from Japanese candlesticks to line charts. Without wicks, there’s little discrepancy to argue over which trend lines are the most valid.

Zooming out further in the chart below, a breakout of downtrend resistance has not only occurred, but its retested and held resistance turned support.

BTCUSD Monthly Line/Candlestick Comparison | Source: TradingView - Click Here For Full Size

If the breakout is indeed confirmed and any additional retests continue to hold, a new bull market is already here. The target of the larger triangle pattern Bitcoin has been trading in for nearly four years measures from the highest and lowest point of the triangle.

This would give Bitcoin price a target of $98,000 per BTC at the next peak.

Price predictions range as high as $100,000 to as much as $1 million per BTC. And with only 21 million BTC to ever exist, these estimates aren’t overblown or outrageous.

BTCUSD Monthly Line Chart | Source: TradingView

The days, weeks, and months ahead for Bitcoin price are critical, as the cryptocurrency must hold this key resistance as support. Without any downtrend support left to hold back the asset, Bitcoin will soon retest $14,000, and then possibly its former all-time high.

A break of $20,000 would put Bitcoin back into price discovery mode, with only psychological and Fibonacci extension resistance left in its path towards $100,000 BTC.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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