Bitcoin followed through on a bullish continuation pattern and is now breaking above an even long-term consolidation pattern. This signals that more gains are in the cards, possibly lasting by the same size as the formation.

Price was previously trading inside a symmetrical triangle, which also resembles a complex inverse head and shoulders pattern. Bitcoin has closed above the triangle resistance and neckline around $3,900 to confirm that a rally could follow. The chart pattern spans $3,200 to around $4,400 so the climb could be of the same height.

The 100 SMA has just crossed above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to be a fake out. Still, it might be early to tell if the moving averages are just merely oscillating to reflect consolidation action.

RSI is already in the overbought zone to suggest that buyers might be tired and willing to let sellers take over. Turning lower could signal that bearish momentum is returning and bitcoin might move south as well.

Similarly stochastic has reached the overbought territory to reflect exhaustion among bulls. A pullback could last until the broken triangle top or until the moving averages dynamic inflection points.

Bitcoin appears to be taking advantage of the anticipation for the Fidelity institutional platform said to be ready for launch in March. Traders are likely setting positions early before volumes and volatility pick up next month, not wanting to get left behind in any potential rallies.

With the consecutive technical breakouts, more and more analysts are also reviving their bullish forecasts for bitcoin and the cryptocurrency industry. Expectations that bitcoin could reach $5,000 soon are still in play while others say that this year may be the last time that the general public could afford bitcoin.

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