The Bitcoin bullish trend shows no signs of stopping – is the danger zone disappearing?

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The Bitcoin bullish trend shows no signs of stopping – is the danger zone disappearing? – Bitcoin (BTC) has shown a strong bullish trend in the market lately, dispelling worries of a downturn. The current surge is supported by solid technical signals and key indicators resetting, pointing towards a positive future for BTC’s price.

Bitcoin bullish

Bitcoin Market Breakout Indicator

An inverted head and shoulders pattern has emerged on the BTC chart. “It’s not the most attractive one I’ve seen, but I’ll take it,” noted crypto investor Quinten Francois, as reported by Cryptopolitan.

Francois mentioned that breaking through the neckline of this pattern could lead to further price recovery, setting the stage for a bullish Bitcoin market. The MACD indicator, a tool used to identify changes in the strength and direction of the Bitcoin price, supports this optimistic view.

As per crypto researcher Jelle, Bitcoin has essentially completed a full reset by returning to the 100-day EMA, forming a MACD bullish crossover below the zero line, and establishing its first higher low in quite some time. This discovery reinforces the positive sentiment surrounding Bitcoin, indicating that the market is ready for a significant upward movement.

Current Trends and Potential Price Movements

According to the latest update, the Bitcoin Relative Strength Index (RSI) indicator, which assesses whether the asset is overbought or oversold, currently stands at 49, up from 33 on May 1. This increase suggests that BTC is now reasonably priced considering market conditions, supporting a positive outlook for Bitcoin.

Based on this optimistic sentiment, cryptocurrency trader Mags has predicted a breakout using this technical signal. However, overall market sentiment remains cautious.

Upcoming economic releases, such as Consumer Price Index (CPI) data and comments from Fed Chair Jerome Powell, could introduce volatility to Bitcoin’s short-term movements. Nevertheless, Bitcoin’s positive trend appears to be resilient in the face of potential market turbulence.

Bitcoin’s recent price trend faced resistance at the levels of US$63,500 and US$63,700. If Bitcoin surpasses the US$63,700 mark, it could trigger the liquidation of over US$516 million in leveraged short bets, providing a significant advantage in the market.

This potential liquidation could act as a catalyst for a substantial price increase, bolstering the positive sentiment surrounding Bitcoin. Simultaneously, Bitcoin’s price has rebounded from a recent low of US$56,000, which many observers believe to be the local bottom for this cycle.

Rekt Capital analysts noted, “If US$56,000 was not the bottom, the current pullback would officially match the cycle’s longest retrace of 63 days.” However, historical data suggests that this retracement will end at $56,000 and within 47 days.

This historical perspective reinforces the bullish narrative for Bitcoin, indicating that the market is poised for a significant comeback. Furthermore, the morning star pattern formed in the US$60,000 support zone indicates a strong possibility of a short-term rise.

Considering the technical setup and increased buyer activity, there is potential for a bull run that could test the overhead trendline. This anticipated rise serves as another indicator of the growing positive sentiment surrounding Bitcoin.

Market Response and Forecast Analysis

Bitcoin is currently trading at US$63,010 with a 2.52 percent intraday increase, indicating a growing momentum in the market. Experts are becoming more confident that Bitcoin will reach a new resistance level of US$68,283, thanks to a combination of technical strength and increased investor interest.

The potential for an upward movement is a key factor in the positive outlook for Bitcoin, suggesting that the market is ready for a new surge. On the other hand, if the momentum weakens, Bitcoin could drop to around US$58,451, which is the lower end of its current trading range. Let’s keep an eye on it.

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