Bitcoin has experienced a huge pump to the upside in a short period of time. Currently holding support at $65,000, is there more to come from $BTC, or is it now time for a pull-back, and some consolidation?
Bitcoin’s fortunes change fast
Bitcoin has been acting like a run-away train over the last few days. The German government selling has now gone, and Institutional money is pouring back into the Spot Bitcoin ETFs - eight straight days of inflows amount to $1.9 billion over this period.
Market sentiment has changed drastically as the price of Bitcoin has rocketed skyward - the Fear and Greed Index going from a Fear reading of 28 last week, to a value of 69, fully back into the Greed this week.
Nevertheless, Bitcoin is looking a bit overbought after this recent price surge, and it is probably time for a short term pull-back. Good support at the $63,000 and $61,000 price levels are possibly where the $BTC price could pull back to.
$65,000 strong barrier to further growth
Source: TradingView
The daily chart above shows the extent of the upside pump. However, the $65,000 resistance is a strong barrier to further growth, and it would be expected that the price is rejected here. The stochastic RSI is at the top on the daily time frame, and this will need to come back down before renewed upward momentum can buoy the price up again.
Therefore a relatively small retrace could take place, possibly bringing the price back to $63,000, or even a deeper correction back to $61,000. The upward-sloping trend line can also serve as support. The price has bounced from this line since October 2023, and now $BTC is back above, it might be expected to continue respecting this uptrend.
Bitcoin battles range midpoint
Source: TradingView
Zooming out a bit further, it can be seen that the $BTC price is not only back in the range, but it is currently battling to get above the mid-range level. This also makes the $65,000 resistance even more important.
Bitcoin bull flag redrawn
However, what could have a bigger impact, is the reforming of the bull flag. The dump down to $53,500 provided the third touch point necessary to confirm this flag, and drawing a parallel trend line for the top of the bull flag, it can be noted that the $BTC price is currently not far away from this.
A break and retest at the top of the bull flag would likely provide the momentum to break through the top of the range. Once through the top of the range it’s off to the races for Bitcoin. That said, there could be a pull-back to come first. Bitcoin rewards the patient.
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.
