Bitcoin Price Analysis: Record Highs Above $73K on the Horizon

A specialized “three-line break” chart indicates a bullish trend, suggesting the broader market uptrend has begun.

Bitcoin traders monitoring daily candlesticks may feel a bit underwhelmed as prices continue to move sideways, despite a recent uptick on Monday. However, a less conventional tool, the “three-line break” chart, now points toward a bullish scenario that could push Bitcoin to new all-time highs.

The leading cryptocurrency saw a sharp rise of over 5%, bringing its price to $66,000—the largest single-day gain since late August, according to CoinDesk Indices.

Although daily candlestick charts remain neutral, showing Bitcoin confined to a corrective descending channel for the past seven months, the three-line break chart reveals a breakout from this pattern on Monday. This suggests a continuation of the broader uptrend that started in October 2023 when Bitcoin was near $30,000. If this momentum continues, Bitcoin could surpass the $73,000 mark.

Image source: Coindesk.

Unlike traditional candlestick charts, which are time-bound, the three-line break chart focuses solely on price movements and trend reversals, filtering out noise and short-term fluctuations. This method provides traders with a clearer view of the overall market trend and potential reversals.

Market technician Steve Nison explains that the three-line break chart operates similarly to point-and-figure charts, though it relies more on price dynamics than strict rules for identifying trend reversals. This flexibility helps traders better adapt to market conditions.

In this chart, vertical bars—colored green or red—represent price movements. A bullish reversal occurs when a new green bar appears above the highest point of the previous three red bars, while a bearish reversal is indicated when a red bar drops below the lowest point of the last three green bars. Bullish continuation is confirmed when a new green bar breaks past the prior one, signaling a sustained uptrend.

While the three-line break chart hints at a possible rally toward new highs, traders should remain cautious. Firstly, the daily candlestick chart shows significant resistance near $70,000 since March, which could pose a challenge. Secondly, a bearish reversal on the three-line break chart—marked by a red bar re-entering the descending channel—could invalidate the bullish outlook and signal a potential downward trend, as seen in late September.

In conclusion, while the three-line break chart signals positive momentum, traders should closely watch both chart types for any signs of market shifts.

Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

The post Bitcoin Price Analysis: Record Highs Above $73K on the Horizon appeared first on Cryptocurrency News & Trading Tips – Crypto Blog by Changelly.

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