3 Charts Suggest Bitcoin Prices Could Be Headed Higher

For bitcoin, the path of least resistance is to the upside, according to technical charts.

Such concerns may be unfounded as the bullish bias has only strengthened in the last 24 hours, as seen in the technical charts below.

BTC scaled the channel resistance earlier today, confirming a bullish breakout, that is, the sell-off from the July 25 high of $8,507 has ended and the bulls have regained control.

A closer look at the chart reveals the top end of the channel was playing a spoilsport since Wednesday.

1-hour chart: Bull flag breakout on the RSI. The relative strength index has witnessed a bull flag breakout - a bullish continuation pattern - which indicates BTC could soon pick up a strong bid and jump to the inverse head-and-shoulders neckline of $6,715.

Daily chart: Short-term MAs are beginning to adopt a bullish bias.

This change of direction by the 5-day and 10-day MA points to a short-term bullish setup.

A bullish breakout, if confirmed, would validate the bearish-to-bullish trend change suggested by the 4-hour chart and allow a sustained move above $7,000.

On the downside, a break below $6,213 would abort the bullish view.

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