Bitcoin Weekly: Short Term More Upside is Still Possible

Bitcoin spent the week hanging out just below the upper edge of the channel. It’s possibly gearing up for a decisive break to the upside, but that can still fit within the scenario of a bear market rally.

Mid-week, bitcoin tried pushing out of the channel, but it couldn’t quite make it.

Let’s see if it goes for another try this week. My take here has not changed since last Monday — I think there’s a decent chance bitcoin actually breaks to the upside. If stock markets stay strong, that is. If they start correcting, then it will be hard for bitcoin to move. But if they keep marching on up, there is space above for bitcoin.

Does this mean I’m bullish bitcoin? No. Beyond a short term rally, not yet.

If bitcoin does break out, that could give room for select altcoins to rally. Some have already moved quite a bit over the past week or two. Some are showing potential bottoming patterns that have not yet confirmed. If this continues, people are going to start calling for altseason again. Perhaps they already have. But to me, altseason is dead. Better treat each chart on its own.

I’m never going to tell you to buy or not to buy. But I’m always going to tell you this: whatever you do, it’s extremely important that you honor your stops. You don’t want to get caught if the market turns down.