Bitcoin's 'Outside Day' Sets Stage for $70K, Altcoins Break Out: Technical Analysis

Thursday's bullish trading range marks an end of the recent consolidation and a resumption of the rebound from lows under $53,000.

Bitcoin (BTC) price rose by over 3% on Thursday, marking the most significant single-day gain since July 24. The breakout was accompanied by the highest trading range in nine days, indicating a potential end to the recent consolidation.

After rising to a high of $67,180 on Wednesday, BTC price pulled back slightly and began consolidating below the key resistance level. However, Thursday’s bullish trading range shifted the focus back to the upside.

A breakout from a consolidation typically occurs in the same direction as the prevailing price trend. In this case, the breakout was to the upside, continuing the rebound from lows below $53,000.

Charting techniques define an outside day as a price trend that begins and ends with a new high and low, respectively. The breakout is complete if the price closes outside the previous day's trading range.

On Thursday, BTC price opened at $63,675, rose to a high of $67,668, and closed at $66,060. The price range extended both above and below Wednesday’s trading range, which began at a low of $62,805 and ended at a high of $67,180.

As a result, BTC price completed an outside day pattern on Thursday, indicating a breakout from the consolidation. The breakout was bullish as it occurred in the same direction as the prevailing uptrend from lows below $53,000.

After rising to a high of $67,180 on Wednesday, BTC price pulled back slightly and began consolidating below the key resistance level. However, Thursday’s bullish trading range shifted the focus back to the upside.

Bitcoin price shifted the August high of $65,200 into a support level with Thursday’s bullish breakout, focusing on the next resistance closer to $70,000. The resistance is identified by the trendline connecting highs registered in March and June.

BTC price rose by almost 1% on Friday, remaining above the 66,000 level and validating the bullish breakout. However, the positive bias would be invalidated if prices fell below Thursday's low of $62,805.