Bitcoin (BTC) starts the week with a bang - is the local bottom now in?

Bitcoin (BTC) starts the week with a bang - is the local bottom now in?

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After a trying week for bitcoin holders, as the bears made yet another attempt to break through the strong $61,000 support, Monday has opened the week with a bang for the king of the cryptocurrencies. Is this rally likely to continue, and is the bottom now in?

Are the bulls about to step back in?

Following on from the big reversal at the end of April, which saw the $BTC price go down to around $56,600, and then quickly surge back as far as $64,600, an $8,000 about turn; last week took $BTC holders back into the doldrums once again, and lows of nearly $60,000 were recorded.

However, a weekly close above $61,000 is perhaps communicating to the bulls that the bears have done their level best, but having exhausted themselves, it’s now time for the bulls to step back in.

Source: Coingecko/TradingView

The very short term hourly time frame shows the break for the $BTC price. This is still early, but a break of the $63,000 resistance would be a next step that would show the resolve of the bulls.

Volume tailing off - big move incoming?

Source: Coingecko/TradingView

Zooming out to the 4-hour time frame, it can be noted that the $BTC price may have to retest this most recent trend line, and may not have the strength to pierce the resistance yet. Also, very importantly, volume is still continuing to fall (red arrow), and this would need to rise for this $BTC rally to go further. That said, when volume tails off like this, it often means that a big move could be about to erupt.

Bull market about to recommence?

Source: Coingecko/TradingView

On the weekly time frame the picture becomes even clearer. $BTC needs to break the resistance, break out of the bull flag, retest, and then head for the highs again. The indicator that would supply the momentum for this is the stochastic RSI. A cross of the indicator lines looks as though it’s about to take place. If it does so, and continues upward, the bitcoin bull market would be very much back on.

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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