Bitcoin Bulls Target $70800 After Breaking Trendline

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Bitcoin has been in an uptrend against the U.S. dollar since April 1. The BTC/USD bulls broke out from a descending trendline on May 25, and as of writing, the pair trades at about $69,300. It stabilizes above EMA 50 in the 4-hour chart, which could lead to higher prices.

Bitcoin Technical Analysis 4-Hour Chart

Bitcoin Technical Analysis 4-Hour Chart

Bitcoin Technical Analysis 4-Hour Chart

The Bitcoin price has been moving sideways since the breakout from the ascending trendline. The low momentum market could be due to the weekend when the trading volume is less than on weekdays. Interestingly, the technical indicators also demonstrate a lack of momentum in the BTC/USD pair.

  • The awesome oscillator value is -128, and the bars are clinging to the zero line, which suggests the trend is neutral in the short term.
  • The RSI value is 57, hovering above 50, suggesting a lack of momentum in the market.

On the other hand, the stochastic oscillator has just returned from overbought territory, recording 71 in the %K line. This development in the technical indicator suggests that Bitcoin became overbought for a short period after the breakout, and the current side momentum could lead to a dip in the price.

Bitcoin Technical Analysis 4-Hour Chart

Bitcoin Technical Analysis 4-Hour Chart

In addition to the stochastic oscillator bearish signal, the BTC/USD 4-hour chart formed an inverted hammer, suggesting a bearish wave might be on the horizon.

Bitcoin Bulls Target $70800 After Breaking Trendline

From a technical standpoint, Bitcoin’s primary trend is bullish, but it trades sideways between immediate support at $68,849 and immediate resistance at $69,807, the 38.2% and 61.8% Fibonacci levels, respectively. The main scenario is bullish despite the inverted hammer and the stochastic signal in the 4-hour chart, and that’s because Bitcoin trends above EMA 50 and the ascending trendline.

Bitcoin Bulls Target $70800 After Breaking Trendline

Bitcoin Bulls Target $70800 After Breaking Trendline

The current uptrend will likely resume if the Bitcoin price closes above the immediate resistance at $69,807. If this occurs, the bullish wave began on May 23 and could target the 78.6% Fibonacci retracement level at $70,813, followed by the May all-time-high at $72,092.

Please note that if the bitcoin price closes below immediate support at $68,849, the consolidation phase could expand to the 38.2% and 23.6% Fibonacci support levels. These Fibonacci support levels also provide a decent entry point for buyers to increase their bids gradually.

Overall, the bullish trend remains valid as long as the BTC/USD price is above the ascending trendline, a resistance level backed by the 23.6% Fibonacci level at $67,513. The uptrend should be invalidated if the BTC/USD price dips below $67,520.

  • 26 May 2024