Investors have been taken aback by the ferocious intraday rise in the price of bitcoin.
Conclusion
- Since the last time we checked in, the price of bitcoin has broken through a key barrier level.
- The 6-hour parallel trend channel is now being breached by the Bitcoin price.
- The bullish argument will be thrown out the window if it falls below the $40,000 mark.
Bitcoin's price is in a strong bullish confluence at the moment.
It appears that the 6-hour parallel channel has been violated for the fourth time this week. BTC's latest 6-hour chart shows a large amount of attention from the "Smart Money."
Some investors may be surprised by today's climb to $43,834, but Bitcoin's price does not appear to be going down any time soon.
A break over the prior support zone of $41,000 was cited in Monday's thesis as an early confirmation for traders seeking for an entrance. In the end, a breakout away from the support zone would be the safest entry point.
Early Wednesday morning, the BTC price surged above $42,777, a level not seen since the beginning of the year. Right now, there are a few key convergences in the price of Bitcoin. Extremely bullish is the high-volume break over the top end of the parallel channel at $43,834. On the other hand, it's encouraging to see such modest volume consolidation above the median parallel trendline. Larger candlesticks are likely to bring Bitcoin values toward $45,000 over the weekend if consolidation continues.
Bitcoin's price must be explicitly invalidated in order to prevent market makers from exerting their influence on the 6-hour trend channel. Breaking below $40,000, the bottom end of the prior support zone, will invalidate the argument. If this happens, the price of BTC is expected to fall to $38,000 or $36,000, a correction of 18% from where it is now.
