- Lark Davis believes that Bitcoin is just one candle away from a breakout.
- Geopolitical tensions remain a major factor influencing cryptocurrency.
Cryptanalyst Lark Davis said that Bitcoin The price is currently attempting to break above the trendline that has held prices back for several months. A candle closing above this line would be a bullish signal. Without this confirmation, the risk of a pullback remains high.
“BTC is trying to break out of the trendline. If we close the candle above this line, it will be a bullish signal,” Davis wrote.
He also noted the 0,382 Fibonacci level ($74,476) as an additional resistance level in the same zone, making it more difficult to achieve a clean breakout.
According to the crypto analyst, the pullback to $97,000 was underpinned by the weekly 50-day exponential moving average, a level that could eventually come back into play around the 0,618 Fibonacci zone ($83,373) if Bitcoin will continue to recover. This level is still far from the current price, but it’s worth keeping an eye on.
Previously Davis explainedBitcoin’s downward trend line, 20-week exponential moving average, and main price channel converge near $77,500. If the price closes above $78,000 this week, all three lines will intersect, which the crypto analyst believes is a crucial event.
Davis, however, warns that a single headline could change the entire course of trading, given tensions with Iran.
However, for now his calculation seems correct, as today the price of Bitcoin is almost broke through the resistance at $76,000, after which it quickly fell back to $500, which should be considered a predictable pullback. Today, BTC’s daily gain exceeded 5%, and its weekly gain reached 10,4%.
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