• Bitcoin price is carving out a cup or cup-with-handle formation.
  • Volume profile looks compelling as BTC rose from the March 5 low.
  • Investors are replicating the bullish BTC commitments of large corporations.

Bitcoin price has been supported by corporations’ broadening interest to use it as an investment alternative such as Tesla, Microstrategy, and Square. The endorsement of prominent figures like Paul Tudor Jones, Stanley Druckenmiller, and Howard Marks has sparked institutional demand for BTC.

Bitcoin price has plenty of upside in the coming days and weeks

Since the February 28 low, Bitcoin price action and underlying volume indicates that the 26% correction was used as a buying opportunity by retail, institutional and corporate investors.  

The bullish outlook is underpinned by the constructive base structure being formed on the 12-hour chart below, which could be a cup or a cup-with-handle formation. The better alternative for substantial gains post-breakout is for Bitcoin price to form a handle, thereby releasing the overbought condition shown in the relative strength index (RSI) and removing any remaining weak holders.

On the downside, essential support for a handle emerges at the head-and-shoulders bottom’s extended neckline, combined with the .382 retracement level and the right shoulder’s high. It equates to a BTC price range of $53,320 - $52,500.

Targets for the Bitcoin price breakout are the 1.382 extension level at $64,109 and then the 1.618 extension level at $67,684. Both extension levels relate to the base formed since the February high.

BTC/USD 12-hour chart

If the significant support mentioned above fails to hold, it will put the critical 23 twelve-hour simple moving average (SMA) in play at $51,890. A close below this support level on a 12-hour candlestick would indicate that another pattern is developing or that a more profound BTC price decline is needed before the breakout.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Cryptocurrency exchanges are on board Terra’s LUNA hard fork and Do Kwon’s plan for the Terraform Labs token’s rebirth. Do Kwon has garnered support from leading cryptocurrency exchanges for the new Terra chain. 

More Terra News

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Ethereum dipped below the $1,900 support level over the past few hours. A decisive close below such a vital demand zone will put ETH at risk of a 38% correction toward $1,200. 

More Ethereum News

A big price move is coming for Binance Coin; here’s what to look out for

A big price move is coming for Binance Coin; here’s what to look out for

A brief technical and on-chain analysis on Binance Coin price. Here, FXStreet's analysts evaluate where BNB could be heading next. 

More Binance Coin News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Bitcoin price, Ethereum and other cryptocurrencies are stabilising after the cryptocurrency space got slaughtered last week and two weeks ago.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis