Published
1 month ago on
May 16, 2024
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Bitcoin surged above important resistance levels on Wednesday, and is currently trading at just under $66,000. Has the bull market now resumed, or will this be another fake rally?
A glorious surge
A glorious 7.6% surge from $BTC took place on Wednesday. Not only did this mean that the beleaguered support at $61,000 did its job and held solid, but also that the $63,000 resistance was shattered.
Wednesday’s price action has printed a long green engulfing candle on the daily, the scale of which hasn’t been seen for quite some time, and it now remains to be seen now much of these gains can be held until the short term momentum indicators are able to reset.
Short term consolidation
Source: Coingecko/TradingView
In the very short term hourly time frame, it can be seen that the $BTC price surge may not be done yet. The price has been consolidating overnight within a sideways channel, and it’s still early to tell whether the price will break up or down. There is also the possibility that the channel morphs into a bull flag, and this would be a signal for an eventual continuation of the upward move.
Support and resistance levels
Source: Coingecko/TradingView
In the medium time frame of the daily, the immediate support and resistance levels are marked. These correspond not only to the price action over these past several weeks, but also to the levels reached at the top of the 2021 bull market. There is still the chance that $BTC comes back down to properly retest the $65,500 support.
The stars are aligning
Coingecko/TradingView
It’s on the weekly time frame however, where the impact of what the $BTC price has just done, can be truly appreciated. Wednesday’s surge has brought the price above the resistance, and near to the top of the bull flag trend line.
The stars are aligning, and should $BTC be able to break through the top of the flag by the end of the week, the momentum coming in from a cross on the stochastic RSI could push the price up towards the magical $100,000 price level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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