Bitcoin unfazed by FUD as it breaks through $6000

Bitcoin has surged more than 40 percent and is now attempting to break through a major resistance zone between $6,100 and $6,450.

Technically, new highs could come at any minute since Bitcoin could be entering a new "Parabolic phase," as Peter Brandt explained, but there is a chance that the market is setting up for a bull trap.

After multiple touches of the upper line and the lower line in the ascending parallel channel, it seems like bitcoin has broken above it, signaling a continuation of the bullish trend.

Throughout 2018, the $6,100 to $6,450 range served as a support zone that held the price of bitcoin on multiple occasions.

On Nov. 13, 2018, the support zone between $6,100 and $6,450 could not hold the price of bitcoin any longer and it broke down.

Bitcoin has been able to break out of an ascending parallel channel where it had been trading for over a month.

Per the TD Sequential Indicator, bitcoin is on a green two candlestick trading above the previous green one candlestick, which is used by traders as a buy signal.

With all the bullish signals, it seems like bitcoin is preparing for another bull market.

For the different bear markets that bitcoin has had, such as the one in 2014 and the other one in 2011, the bottom was marked by a false bullish signal.

If bitcoin is not able to break above it with enough volume, a sharp decline in prices could be expected.