Bitcoin broke out of a massive consolidation pattern known as an “Adam and Eve” double bottom. The breakout was fueled by short liquidations that stacked up around the $4,000 level over the last 4–5 months.
The measured move for the breakout has us testing several resistance levels and ultimately has a price target of around $5,300.
We have managed to break the immediate bearish market structure and are attempting to break the macro bearish market structure. At the moment we are testing a break of the descending trendline as we also approach the monthly resistance level in the $4,800s.
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