Bitcoin (BTC) bounces – but will it continue?

As an analyst with a few years of experience in the cryptocurrency market, I have seen Bitcoin’s volatile nature and its tendency to surprise us at every turn. After observing the recent bounce in Bitcoin’s price, I am cautiously optimistic but remain vigilant.

As an analyst, I’ve observed Bitcoin surging past $63,000 on Thursday, causing a ripple effect on the altcoin market. Yet, a recent trend of outflows from US and Hong Kong Bitcoin ETFs has cast a shadow over this upward momentum. The question remains: Can Bitcoin sustain its rebound?

Lower highs and lower lows

I’ve noticed that Bitcoin has been moving in a sideways and downward trend for the past ten weeks. With every attempt at a rally, the Bitcoin price has spiked momentarily, but ultimately failed to hold its ground, resulting in new lows being set. On the other hand, we have yet to see any significant increase in higher highs.

In simpler terms, the recent price increase wasn’t significant, reaching only $63,000 before potentially acting as a new support level. However, for this upward trend to continue, it must surpass this resistance level; otherwise, it may lead us back towards revisiting previous lows.

A potential explanation for the rally potentially losing steam could be the substantial negative Bitcoin ETF outflows observed in the US and Hong Kong markets on Thursday. For Bitcoin to break free from its current slump, these outflows must significantly reverse and become inflows, providing the necessary momentum.

Support holds firm

In simpler terms, the short-term chart indicates a recent minor rebound. On the positive note, the price held above the crucial support at $61,000. This was reinforced by a descending trendline that has persisted for over a month. However, there’s a possibility that the price may drop again to revisit this level or even challenge the major trendline beneath it.

Flipping resistance into support

As a researcher closely examining Bitcoin’s price action in the hourly timeframe, it becomes apparent that the cryptocurrency seems to be attempting to transform resistance into support levels. This potential shift could signal the start of another rally if a bounce occurs from the current position. Achieving a new higher high above $65,500 would be an encouraging sign for this bullish scenario.

Explosive move coming

On a weekly basis, the bull flag pattern remains valid, with $63,000 serving as a robust support level. Decreasing trading volume hints at an imminent significant price shift. The upcoming week’s closing price will offer valuable insights into the potential direction of the price trend.

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2024-05-10 13:09