Lark Davis Says Bitcoin Is One Candle Away From a Breakout

Bitcoin is trading at $74,397, up 4.88% in 24 hours, alongside the crypto market that rose 4.37%. The move puts BTC right back at one of the most technically important zones it has faced in months, and analysts are watching to see whether it holds or folds.

Crypto analyst Lark Davis stakes. Bitcoin is currently attempting to break above a trendline that has been capping prices for months. A confirmed candle close above it would be a bullish signal. Without that confirmation, the rejection risk remains high.

“BTC is trying to poke its way out of the trendline. It’s bullish if we close a candle above it,” Davis said. He also flagged the 0.382 Fibonacci level ($74,476) as additional resistance sitting at the same zone, compounding the difficulty of a clean breakout.

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He said the rejection at $97,000 was reinforced by the weekly 50 EMA, a level that could eventually come back into play around the 0.618 Fibonacci zone ($83,373) if Bitcoin continues recovering. For now that level is far from current price but worth keeping on the radar.

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In another Davis also explained what happens over the next two to three weeks. The Bitcoin downtrend line, the 20-week EMA and a major price channel all converge around $77,500. A weekly close above $78,000 would simultaneously clear all three, an event Davis describes as extremely significant.

“If we can get a weekly close above $78,000, that gets us out of the channel, over the 20-week EMA and out of the downtrend line,” he said.

The problem, as Davis acknowledges, is the macro environment. With US-Iran tensions driving markets in both directions on a daily basis, technical setups are constantly being overridden by headlines. “Everything is so headline driven right now that any negative or positive headline sends the price spiraling in either direction,” he said.

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