- Bitcoin steadies with the recovery toward $60,000 after breaking out of a falling wedge pattern.
BTC's slightest resistance path is north based on the prevailing technical picture.
Bitcoin has been consistent with the recovery from the recent dip to $47,000. The slide from $65,000 was an alarm for many investors but reclaiming the position above $60,000 affirmed that Bitcoin still had the potential to recover, perhaps post new all-time highs.
At the time of writing, Bitcoin trades marginally above $55,000 amid the uptrend from levels under $50,000. Resistance at $55,000 makes it difficult to rally to $60,000 quickly. Moreover, traders should anticipate delay at the confluence formed by the 100 Simple Moving Average and the 200 SMA around $57,000 and $58,000.
Technical indicators on the four-hour chart validate the bullish outlook. For instance, the Moving Average Convergence Divergence (MACD) indicator has just crossed into the positive region. In addition to that, the MACD line (blue) currently expands the gap above the signal line, which is a massive bullish signal.
Similarly, the Relative Strength Index (RSI) is not overbought amid the uptrend. Therefore, buyers still have the upper hand.
It is essential to keep in mind that Bitcoin recently broke out of a falling wedge pattern on the same four-hour chart. This pattern is created using two converging trend lines connecting an asset’s declining peaks and lower lows.
Before the trend lines meet, a breakout usually occurs and is marked by an increase in trading volume. The breakout tends to have a price target measured from the wedge’s highest to the lowest point, as illustrated on the chart. In other words, the ongoing uptrend could hit levels close to $60,000 before continuing with the next phase of the journey to $65,000.
Bitcoin intraday levels
Spot rate: $55,200
Trend: Bullish
Volatility: Expanding
Support: 52,000 and $47,000
Resistance: $55,500 and $57,000
