Upside Breakout Still Possible

BITCOIN HAS BEEN UNABLE TO LEVERAGE THE BULLISH TECHNICAL PATTERN WE MENTIONED LAST WEEK.  Over this past weekend it tickled the 6,600 zone but promptly sold off. But that downturn ultimately proved to be a shallow one (so far), and this has kept the possibility of an upside breakout alive.

Further, despite the 30% drop from the July highs, Bitcoin’s 14-Day RSI has yet to hit oversold territory.  Indeed, that’s a minor victory considering the tepid bounce up to this point.  However, it’s a necessary change of character that needs to persist in order for the eight month downtrend to eventually turn.

To reiterate, we’ll need a break above the most recent highs (6,620) for the technical formation to officially trigger.  A measured move then would target 7,300.