Are you keeping a close eye on Bitcoin’s recent movements in the market? Well, there’s plenty to discuss from the past week’s trading activities. Bitcoin saw a rally off last week’s low, reaching a high of 65,523 on Monday, where it recaptured the 20-Day Moving Average and internal downtrend line. This signals strength in the market, but there still remains resistance at the 50-Day Moving Average.
What’s interesting to note is that the prior bull wedge pattern has expanded to incorporate last week’s low, with an upside breakout of the wedge triggering on Saturday. The breakout, combined with the break above the 20-Day MA, provides bullish evidence for a potential upward trend. However, it’s crucial to monitor what happens next to determine the market’s direction.
Currently, Bitcoin is holding above the support levels of the downtrend line and 20-Day MA since Saturday. But without further confirmation of a bullish breakout, the pattern could be at risk of failure unless there is an increase in upward momentum soon. To ensure continued strengthening, Bitcoin must stay above the downtrend line and top of the wedge.
A bullish breakout above 65,523 demonstrates strength, with potential for further gains above the prior swing high at 67,226. The relationship to the 50-Day MA at 65,848 is also significant, as surpassing this level could lead to sustainable strength and possibly new record highs for Bitcoin. However, a drop below last week’s low would signal weakness and could lead to a deeper retracement.
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