Bitcoin (BTC) starts the week with a bang – is the local bottom now in?

As a researcher with extensive experience in cryptocurrency markets, I believe that this latest rally in Bitcoin (BTC) could indeed be the beginning of a new bullish trend. The strong weekly close above $61,000 is an encouraging sign for the bulls and suggests that the bears may have exhausted their energy in recent weeks.

After a challenging week for Bitcoin investors, as bears made another effort to shatter the robust $61,000 resistance level, Monday’s market opening brought a thrilling start to the week for Bitcoin, the leading cryptocurrency. However, it remains uncertain if this upward trend will persist or if we’ve reached the bottom yet.

Are the bulls about to step back in?

After the significant reversal in late April that caused Bitcoin’s price to plummet from approximately $64,600 to around $56,600, representing an $8,000 shift; last week brought more disappointing news for Bitcoin holders as they witnessed another dip, with prices approaching nearly $60,000.

As a researcher studying the cryptocurrency market, I’ve noticed an intriguing pattern: if Bitcoin manages to close above $61,000 on a weekly basis, it might signal to the bullish investors that the bearish sentiment has reached its peak. After a grueling effort from the bears, they may have run out of steam, indicating that the bulls are now poised to regain control.

In the immediate timeframe, the hourly chart indicates a potential pause for Bitcoin’s ($BTC) price at around $63,000. If this level is breached, it could signal the bulls’ determination to push prices higher. However, we are still in the early stages of this trend.

Volume tailing off – big move incoming?

At a broader perspective, the $BTC price chart reveals that a retest of the current trend line is imminent within the next 4 hours. The resistance level seems robust enough to prevent a breakthrough at present. Furthermore, the volume indicator (red arrow) has been consistently declining, which is a concerning sign. However, it’s essential to note that decreasing volume often precedes significant price movements.

Bull market about to recommence?

On a weekly basis, the trend becomes more defined for Bitcoin (BTC). For it to continue its uptrend, it must first surmount the resistance level and emerge from the bull flag pattern. Following this, a retest is required before making another push towards new highs. The stochastic RSI serves as the catalyst for this advance, with a potential cross of indicator lines imminent. If this occurs and the upward trend persists, the Bitcoin bull market will have regained significant momentum.

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2024-05-13 13:05