It was too soon to answer such questions but the importance of its current upcycle cannot be stated enough. At the time of writing, BTC traded at $37,654, down by 2% over the last 24 hours.
Bitcoin Daily Chart
Bitcoin prices have touched the $30,000 mark three times since the May 19 plummet but the support zone has successfully negotiated through different waves of selling pressure. Its most recent rebound from $30K resulted in a sharp surge in value and gains accumulated to nearly 30% in the last five days alone. Six successive green candles lined up on its daily chart- a development that was last seen when Bitcoin closed above $60K in mid-March.
Bulls in the clear? Not until the $40,000-$41,000 price ceiling is breached. Moreover, the visible range noted a high level of interest for $38,000 which meant that prices could trend close to this level before making their next swing to the upside. Bear in mind that the longer BTC consolidates close to $40000, chances of an upwards breakout were high. If the next week pans out this way and $40,000 is eventually toppled, BTC’s next destination would likely be the $45K-mark which lay just below its 200-SMA (green). In case of any dips, an immediate support zone resided between $36,000-$36,500.
Reasoning
The Relative Strength Index’s climb above 60 was its first since the mid-April when BTC had snapped its ATH. This was a sign of bullish strength finally returning to the market after a long hiatus. The Directional Movement Index also noted a bullish crossover a few days ago as an uptrend intensified in the market. The Awesome Oscillator moved above the half-line which highlighted a further rise in upwards pressure.
Conclusions
There were a plethora of a positive signs in the Bitcoin market but a crucial development was yet to be made. The $40,000-$41,000 mark was not yet toppled and the market could settle into a consolidation phase before the next push. Once the breakout does occur, BTC prices could push as high as $45,000 in a best case scenario as weak resistance levels lay in its path forward.
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