Bitcoin (BTC) primed for resumption of bull market

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As an experienced analyst, I see Wednesday’s surge in Bitcoin’s price as a promising sign that the bull market may indeed have resumed. The shattering of important resistance levels and the appearance of long green candles on various time frames are indicators of strong buying pressure. However, it is crucial to note that consolidation can still occur in the short term, and support and resistance levels must be closely monitored. If Bitcoin can hold above current support levels and break through resistance in the medium and long term, we could see a significant upward trend towards $100,000 or even beyond. The alignment of technical indicators on multiple time frames further strengthens this bullish outlook.

On Wednesday, Bitcoin broke through significant resistance points, pushing its price up to nearly $66,000. However, there’s debate among investors: is this latest increase a sign of the bull market’s return or just another false rally?

A glorious surge

On Wednesday, Bitcoin experienced a magnificent 7.6% increase from its previous price, reaching a new level. This uptick not only fortified the previously weak support at $61,000 but also broke through the once formidable resistance at $63,000.

As a crypto investor, I’ve noticed an intriguing development in the market on Wednesday. A large green candlestick, or engulfing candle, has emerged on the daily chart – a sight not seen for quite some time. This bullish pattern indicates that the buying pressure has significantly exceeded the selling pressure during that period. However, it’s essential to keep in mind that holding onto these gains might be challenging until short-term momentum indicators can rebalance themselves.

Short term consolidation

In the immediate hourly timeframe, the Bitcoin price surge might not have reached its peak yet. Overnight, the price has been moving within a sideways trend, indicating uncertainty about whether it will continue to rise or decline further. Additionally, there’s a chance that this sideways pattern evolves into a bull flag, which would suggest that the uptrend could resume in due course.

Support and resistance levels

As a researcher studying bitcoin’s price action, I observe that in the intermediate term, the daily chart reveals significant support and resistance levels. These levels are not only determined by recent price movements over the past few weeks but also correspond to prices reached during the 2021 bull market peak. There is still a possibility that Bitcoin may revisit the $65,500 support for proper testing before potential further upward momentum.

The stars are aligning

Coingecko/TradingView

As a researcher studying the cryptocurrency market, I find that the weekly time frame provides valuable insights into the recent trends and movements of Bitcoin’s ($BTC) price. After Wednesday’s significant surge, the price has breached the resistance level and is approaching the upper trend line of the bull flag pattern.

If Bitcoin’s price breaks through the flag at the top by the week’s end, the surge indicated by the stochastic RSI crossing could potentially propel the cryptocurrency to hit the significant $100,000 mark.

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2024-05-16 14:06