Bitcoin recently made a bullish break from a symmetrical triangle consolidation pattern to signal that a long-term climb is due. Price also seems to have completed a retest of the broken resistance, so bulls could take it up to the next upside targets marked by the Fib extension tool.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. Also, the gap between the moving averages is widening to reflect strengthening bullish momentum.

This could take price up to the 38.2% extension at $4,152.40 or the 50% extension that lines up with the swing high. The 61.8% level is at the $4,361 level while the 78.6% extension is close to the $4,500 major psychological mark. The full extension is located close to $4,700.

RSI is already turning higher from the oversold region to signal that bullish momentum is picking up. Stochastic is also heading north so Bitcoin price might follow suit while bulls regain control. A bullish divergence can also be seen as price made higher lows while stochastic had lower lows.

The recent slide is being seen as a much-needed correction from the earlier rallies, which were seen to have been driven by a huge pickup in optimism from bullish forecasts. Still, this does not take away how Bitcoin seems to have bottomed out from the longer-term slide and may have a lot to look forward to this year.

For one, Fidelity looks set to launch its institutional platform next month and this could spur a large increase in volumes and volatility. Banks and big funds would likely take advantage of the bitcoin custody offered in placing bets for their own portfolios, and retail traders would likely hop in early as well.

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