Bitcoin (BTC) retests support – onward and upward from here?

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As a seasoned crypto investor with several years of experience under my belt, I’ve learned to read between the lines of market trends and price movements. After Wednesday’s exhilarating price surge, I’m cautiously optimistic about Bitcoin’s current consolidation above the crucial support at $65,500.

As a crypto investor, I’ve witnessed an impressive price surge for Bitcoin (BTC) on Wednesday, pushing it to new heights. However, after reaching $65,500, the price took a pause on Thursday for what seems like a much-needed breath. If this level successfully holds, we might be looking at the foundation for the next leg upwards in Bitcoin’s price journey.

Price consolidation

Bitcoin experienced tranquil conditions on Thursday following its 7.6% surge the previous day. The cryptocurrency now hovers above the significant support level of $65,500. A reevaluation of this support was initiated, but there’s still room for a potential decline to around $64,000 or potentially lower prices.

Bull flag is shaping up

On the 1-hour chart, there are signs of a bull flag emerging. If this trend persists and the price remains within the designated range, an upward breakout is more probable than a downturn. Using technical analysis, the potential target for this pattern lies approximately at $71,000.

Bullish developments

On a larger timescale, Bitcoin’s weekly chart remains optimistic. The volume is declining, indicating a potential large price surge in the near future. Over the next few days, there are three key objectives:

Bulls need to take full advantage

Next week, a significant price surge is expected if the stock price breaks out and retests the flag’s peak in an uptrend. This event occurs seldom, approximately once every six months, as indicated by the stochastic RSI crossover at the bottom. The success of this bull run hinges on capitalizing fully on this momentum to reach new all-time highs, or failure may result in a failed confirmation above and potential price stagnation.

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2024-05-16 19:07