Bitcoin (BTC) Breaks Out of 331-day Resistance. Is a Bounce Incoming?

Although Bitcoin (BTC) is still struggling to regain the $20,000 level, bullish signals are emerging on the long-term chart.

The largest cryptocurrency has broken out above the descending resistance line, which has been in place for 331 days since last year’s all-time high (ATH).

In addition, Bitcoin is about to break out of a short-term ascending triangle pattern, which often signals a trend reversal. Moreover, the daily RSI has generated two drives of bullish divergence.

Breakout from long-term resistance line

BTC reached an ATH of $69,000 on Nov. 10. Since then, it has been dropping and reached a low of $17,567 on June 18. This represents a 74% decline against the ATH so far.

The bear market on the BTC chart has been going on for 331 days. During this time, the price of BTC has had no significant bounces, giving long-term investors few opportunities to exit long positions.

Bitcoin has followed a descending resistance line over this period, which it has only tested twice (blue arrows).

The first time was in late March at a local peak at $48,240, and the second in mid-Sept. in the $22,800 area. On both occasions, the price was rejected.

This week, however, BTC finally managed to break above this descending line of resistance, while regaining the $20,000 level (blue circle).

However, the initial surge did not find a continuation, and at publication time Bitcoin has once again lost this psychological area.