Bitcoin Breaks Through Resistance: Will It Soar or Crash and Burn?

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Well, well, well, if it ain’t Bitcoin (BTC) deciding to throw caution to the wind and break free from its little channel. The mighty coin is once again above that trendline it seems so fond of. But hold your horses, folks. The short-term momentum indicators are looking as exhausted as a hiker who’s lost their map. Not to mention, there’s a little gap on the CME futures chart that’s eyeing a dive down to $110,740. So, does Bitcoin need a little nap before it can keep galloping, or is it just fooling around?

Back down to fill the CME gap?

Ah, Friday was a different beast altogether. Bitcoin’s price looked like it was about to take a nosedive off the top of its channel, as though it had been told a joke it didn’t find funny. But the bulls, those persistent little creatures, had other plans. Over the weekend, they rallied faster than a kid on Christmas morning. By Monday, Bitcoin had reached $116,400, and well, who knows if it’s done yet.

Then, of course, we had this W-shaped pattern-who doesn’t love a good W? The price broke through the neckline, and if this pattern behaves like it’s supposed to, we might be looking at a price target of $124,000. But don’t get too excited just yet. The market’s a bit too overbought right now, and that pesky CME gap just below $111,000 is hanging around like a bad smell. Gaps like this tend to get filled faster than you can say ‘rally’-and with the bulls already looking more tired than a marathon runner, it’s not out of the question that Bitcoin may take a breather to close that gap. A little back and forth action could help reset the momentum indicators, too.

$BTC bulls battle to hold the 50-day SMA

Now, if we take a look at the daily chart, Bitcoin’s price is doing its best to hold above the 50-day Simple Moving Average (SMA), like a dog trying to hold onto its favorite stick. It made it back above it on Monday, but whether or not the bulls can keep their grip remains to be seen. The Stochastic RSI indicators seem to be eyeing a descent, like a hiker gazing down a steep hill.

If the price does decide to head back down to close that CME gap, don’t worry, there’s a safety net. The 200-day SMA could come to the rescue like an old friend with a comforting blanket.

Stochastic RSI indicator cross-up is key for bull market continuation

Now, over on the weekly chart, the bull market parabola is still holding up like a well-built hammock, and Bitcoin’s price is still clinging above the 50-week SMA-basically the backbone of the bull market. As long as these two sturdy supports hold, we can expect the price to keep climbing, like a determined squirrel with a nut.

But wait-here’s the real kicker. The weekly Stochastic RSI indicator has decided to turn its ship around and point towards the bull side. If that blue line crosses above the red one, we could see some serious price momentum pushing Bitcoin upwards, maybe even through that elusive 8-year ascending trendline. And when that happens? Oh, honey, hold onto your hats. The consequences could be downright spectacular, or as the kids say these days-lit.

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2025-10-27 12:48