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As we analyze the current state of the market, one key concern that stands out is the upside resistance zone that Bitcoin is currently facing. A daily close above last week’s high will confirm an upside weekly breakout, but the presence of a symmetrical triangle in the path of advancement raises questions about the potential for a deeper retracement before Bitcoin can push through the consolidation zone.
Despite the bearish tone following the drop below the 50-Day MA on April 13, the lack of significant downside follow-through suggests a mixed sentiment among investors. Last week’s retracement found support around the 38.2% Fibonacci level, with a subsequent bounce to test the 50-Day MA as resistance – a typical pattern in a declining trend where former support turns into resistance.
If Bitcoin fails to hold above Sunday’s low of 64,250 and drops below the blue 8-Day MA at 64,505, it could signal further bearish momentum. In such a scenario, the next target zone at 56,168 becomes a likely destination, supported by a small falling ABCD pattern and the 61.8% Fibonacci retracement at 51,999.
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