This Chart Indicates Bitcoin May Be Headed For Record Highs Above $73K

As a crypto investor, I’m thrilled to share that the top digital currency, in terms of market value, surged by approximately 5% and reached an impressive new high of $66,000 today. This marks its most significant one-day increase since August 23rd, as per TradingView’s charting platform.

Despite this, the daily candlestick chart indicates a noncommittal stance on Bitcoin’s trajectory, as it continues to move within a seven-month-long corrective descending channel defined by trendlines linking the highs from March and June and the lows from May and July.

However, the three-line break chart shows that the breakout of the prolonged descending channel happened on Monday and the broader uptrend from October 2023 lows near $30,000 has resumed. The bull victory could lead to record highs above $73,000.

Instead of a three-line break chart appearing similar to a candlestick chart, it concentrates more on price fluctuations and shifts in trend direction, disregarding the actual time frame. This allows traders to weed out unpredictable price variations and background noise, focusing instead on the current trend and possible upcoming trend changes.

In simpler terms, a Japanese trader refers to the three-line break chart as a refined version of traditional point and figure charts. This is because instead of following predetermined rules for reversals, these charts rely on the market’s own movements, making them adaptable to the market’s power and momentum. As stated by chartered market technician Steve Nison in his book “Beyond Candlesticks.

The chart featuring line breaks is composed of vertical sections, often referred to as lines or bars (in this case, green and red). A bullish reversal, symbolized by a fresh upward bar (green), takes place when the price surpasses the highest point among the last three downward red bars. Conversely, a bearish reversal, signified by a new downward bar (red), occurs when the price dips below the lowest point of the preceding three upward green bars.

A bullish continuation occurs when the price moves above the previous green line, confirming an extension of the already-established uptrend. That’s precisely what happened on Monday, with the green bar cutting through the trendline off March and April highs, as seen below.

As the line break chart suggests potential for a new peak rally, traders need to pay close attention to two key factors. Firstly, the candlestick chart reveals that bulls have repeatedly struggled to maintain control above $70,000 since March, suggesting possible resistance at this price point.

As an analyst, I’d keep a close eye on potential bullish invalidations on the line break chart. This would manifest as a fresh red bar pushing prices back within the channel after a breakout attempt. It’s important to note that failed breakouts, such as the one observed in late September, can often lead to more significant price drops.