At time of writing, Bitcoin (BTC) has broken out of two resistance lines at about $8,400, and the market holds its breath waiting to see if the breakout has legs.
We can see the breakout point, below on the hour chart, out of a diagonal uptrend resistance. Notably, the formation Bitcoin had been trending in looked more like a rising wedge than anything – normally a bearish pattern presaging a breakdown.
One piece of evidence in refutation of that pattern interpretation, however, is the rising volume which attended this movement: typically, volume drops off toward the end of the pattern, whereas here it was rising. This might also make us believe that the breakout is not a fakeout, but in…