Thinking of Selling All Your Bitcoin? Check This Out First!

When Bitcoin (BTC) fell through a critical trendline a week ago, and then confirmed the breakdown, it appeared as though the writing was on the wall for a possible end of the bull market. However, there is still one indicator that could signal a huge rally into the end of this year.

$BTC breakout on Thursday?

Source: TradingView

The 4-hour chart shows that the price action is below both of the important trendlines. Both have been retested, and so far, except for the fakeout on Tuesday, they are remaining impervious to the bulls

That said, on Thursday morning the $BTC price has bounced from the $108,000 horizontal support and is heading for the junction of the two trendlines. The Stochastic RSI indicators have just turned up so perhaps there could be a breakout later today.

Bearish head and shoulders pattern still in play

Source: TradingView

In the daily chart there is a bearish and foreboding head and shoulders pattern to worry about. The pattern has fully formed, the $BTC price has dropped below the neckline, and has confirmed the breakdown

Does this mean that the price will now continue on down to the extent of the measured move at $88,000? Yes, this possibility is now open. However, if the bulls can force the price back up above the neckline and confirm there, the pattern would be broken and all would be to play for again

Thursday morning’s rally could be the start of a bullish fightback. A small W pattern is taking shape and the neckline of this could be the neckline of the head and shoulders pattern. This could be a critical bull/bear struggle.

The weekly Stochastic RSI holds the key

Source: TradingView

The weekly chart for the $BTC price holds the key. While there is plenty of gloom and doom around social media on how the price has fallen through a critical trendline and has confirmed below, there is a signal brewing in the weekly time frame that can change everything.

If one looks at the Stochastic RSI for the whole of this bull market, it can be seen that every time there was a cross up from the bottom that got all the way to the top, this resulted in a huge rally every time.

The Stochastic RSI indicators could be at the very bottom by the start of next week, and even if they don’t get right to the bottom they could still start angling back around.

Of course, who is to say they won’t just bounce around the bottom for a while, just like they did during the huge 8-month bull flag in 2024? Or the indicator lines may turn back down before reaching the top as they did in July 2023. That said, after both of these occurrences, there was an eventual big rally

Just to have an idea of what is possible here, if one takes the average of these last five rallies it comes to 79.6%. If one measures this percentage just from the current price today, it would lead to a stunning top of $197,000

This bull market is not just about to be over, it potentially has a long way still to go. Selling your Bitcoin now could be the worst decision you ever made.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.