Bitcoin’s bullish trend reinforced as ‘danger zone’ signals fade

Bitcoin is seeing a strong upward push, shaking off earlier fears of a downturn. This comes as technical signals strengthen and key indicators reset, suggesting a bright road ahead for Bitcoin’s price.

Bitcoin Market Indicators and Breakout Signals

Bitcoin’s price chart is showing an inverse head and shoulders pattern, a strong indicator that often predicts a reversal of a previous downward trend. Crypto investor Quinten Francois pointed out this pattern, saying, “Inverse head and shoulders pattern spotted on the $BTC chart. Not the most beautiful I’ve ever seen, but I’ll take it.” He suggests that breaking the neckline of this pattern could pave the way for further price recovery.

The moving average convergence/divergence (MACD), a tool used to spot changes in the strength and direction of Bitcoin’s price, is also showing positive signs. According to crypto analyst Jelle, “Bitcoin has nearly completed a full reset. Back to the 100-day EMA, a bullish MACD cross below the zero line—and the first higher low in a long time. It’s looking good.”

Current Trends and Potential Movements

As of the latest updates, Bitcoin’s Relative Strength Index (RSI), which measures whether it is overbought or oversold, stands at 49—up from 33 on May 1. This suggests that Bitcoin is currently valued fairly according to market conditions.

Crypto trader Mags, following the bullish sentiment, expects a breakout based on these technical indicators. However, the broader market sentiment remains cautious. The upcoming Consumer Price Index (CPI) report and comments from Jerome Powell, Chair of the Federal Reserve, might bring additional volatility, impacting Bitcoin’s short-term movements.

Source: Mags

Rising Through Resistance

Bitcoin’s trajectory faced resistance around the $63,500 and $63,700 marks. If Bitcoin pushes above $63,700, it could potentially liquidate over $516 million in cumulative leveraged short positions, providing a substantial boost to its market position.

Source: TradingView

At the same time, Bitcoin’s price has rebounded from a recent low of $56,000, which many analysts believe was the local bottom for this cycle. Rekt Capital, a well-known analyst, suggests, “If $56,000 was not the bottom then this current pullback will have officially equaled the longest retrace in this cycle at 63 days. However, history suggests that this pullback ended at $56,000 and 47 days.”

Moreover, with a morning star pattern forming at the $60,000 support zone, there is a high potential for a short-term rally. The technical setup, coupled with increasing buyer interest, points to a possible bull run challenging the overhead trend line.

With Bitcoin currently trading at $63,010 and seeing an intraday rise of 2.52%, the momentum is building. There’s a growing consensus among analysts that a mix of technical strength and renewed investor interest could push Bitcoin toward a new resistance level at $68,283. Conversely, should the momentum falter, we could see a drop to around $58,451, marking the lower bound of the current trading range.


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