Bitcoin (BTC) recovery gathers steam, but pull back inbound

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As a seasoned financial analyst with over a decade of experience in the markets, I have witnessed the ebb and flow of Bitcoin (BTC) prices many times over. The current situation at hand is particularly intriguing, as we’ve seen a dramatic turnaround from the intense selling pressure just weeks ago, to a robust bullish momentum that has propelled Bitcoin to reach the major resistance at $63,000.

Bitcoin (BTC) hit a significant barrier at the $63,000 mark on Monday, adding approximately $2,300 to its price. If Bitcoin manages to surpass this hurdle, its next stop might be around the $71,300 level, representing the upper limit of its current range. However, a temporary decline could be imminent.

Recently, there’s been renewed interest in cryptocurrencies among buyers, resulting in a significant surge for Bitcoin. Over just the past three days, its value has increased by an impressive $5,000. Contrastingly, during the preceding five-week period, Bitcoin experienced substantial losses totaling around $18,500 due to intense selling from various entities including the German government.

On Monday, the price of Bitcoin has hit a crucial barrier at $63,000 and is currently hovering around this mark. So far today, Bitcoin has gained 3.6%, but facing some resistance at this level. If the positive trend persists, a breakthrough above $63,000 is possible.

Short term momentum is dying

In the near term, Bitcoin ($BTC) has shattered the descending trendline, edging close to resistance levels. However, the Stochastic RSI suggests that $BTC may have been oversold, considering the indicator lines are positioned at the upper threshold. The momentum could be weakening, and it’s noteworthy that this pattern is observable on both the 8-hour and 12-hour charts, and is even approaching overbought conditions on the daily chart.

Rejection from $63,000, and retest of $61,000?

The weekly chart offers clearer insights. The bitcoin price has recently been turned away from the $63,000 resistance mark. It’s possible that the $61,000 level will be revisited next. This could help the shorter time frame stochastic RSIs recover.

Weekly stochastic RSI is main catalyst

Based on my extensive experience in financial markets and technical analysis, I strongly believe that the main catalyst for potential price movement lies at the bottom of the chart. The weekly Stochastic RSI is a powerful tool that can indicate significant momentum shifts. When the blue fast line hovers just above the 20 level, it sets the stage for an intriguing scenario.

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2024-07-15 12:33