Bitcoin’s ‘Outside Day’ Sets Stage for $70K, Altcoins Break Out: Technical Analysis

On Thursday, there was a significant increase in Bitcoin’s value, rising by more than 3% – its largest jump in nine days. This surge took Bitcoin to its highest point since July 31st. According to the data from TradingView, this increase occurred within a broader trading range compared to Tuesday’s activity.

As a researcher, I’d interpret this as follows: Yesterday, the cryptocurrency exhibited a “bullish outside day” pattern, which implies that the recent consolidation phase below $65,000 has likely concluded, and we might be witnessing a resumption of the uptrend that began at the lows around $53,000.

In simpler terms, an “outside day” – a term used by analyst Thomas N. Bulkowski in his book “Encyclopedia of Chart Patterns”, can occur right in the middle of a price trend, similar to flags and pennants. As an outside day signals continuation, it’s best to anticipate that any breakout will likely follow the direction of the existing price trend.

The price surge has turned the previous August peak into a potential support point, making us look towards the upcoming resistance near $70,000 instead. This resistance is determined by drawing a line connecting the highest points reached in March and June.

On this Friday, Bitcoin is experiencing a nearly 1% growth and hovering around $66,000, reinforcing its bullish surge. If the price drops below the previous day’s low of $62,805, however, the optimistic outlook may be called into question.

Altcoin breakout

Although Bitcoin continues to move within a wide downward pattern, the overall market value of non-leading cryptocurrencies (alternative coins or altcoins) has managed to break free from a six-month phase of correction.