It was another positive week for BTC/USD, which was up +1.9% as of London’s close on Friday despite finishing considerably off its best levels.
Price movement on the weekly timeframe has been working between the limits of a potential bullish flag pattern since forming the all-time high of $73,845 in March. Even though the unit faded the upper edge of the aforementioned pattern last week, the daily timeframe suggests there is scope to navigate higher terrain.
All-time highs in reach
The Research Team recently communicated that BTC/USD bulls had made a comeback since forming a low of $56,478 and completed a daily inverted head and shoulders pattern (left shoulder: $59,559; head: $56,478; right shoulder: $60,165). The advance sent the unit through the pattern’s neckline, a descending line extended from the high of $67,273, and permitted traders to pencil in the pattern’s profit objective – taken from the value between the head and the neckline and extended from the breakout point – which shares chart space with the all-time high of $73,845 at $73,756.
Bolstering the possibility of challenging all-time highs this week, the Relative Strength Index (RSI) rebounded from trendline support (taken from the low of 23.71) on the weekly chart and the daily chart’s RSI is treading water ahead of trendline support, extended from the low of 35.47. The RSI also remains above the 50.00 centreline on both charts (positive momentum).
Direction this week?
A daily decision point area at $64,612-$66,484 held ground in the second half of last week, and price has room to move higher this week towards the all-time highs/inverted head and shoulders take-profit objective at around $73,840ish. This, of course, also highlights a possible breakout above the weekly chart’s bullish flag pattern structure.
This material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs. Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from FP Markets. The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky; losses can exceed your initial payment and you must be able to meet all margin calls as soon as they are made. When trading CFDs you do not own or have any rights to the CFDs underlying assets.
FP Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. A Product Disclosure Statement for each of the financial products is available from FP Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354).
Recommended Content
Editors’ Picks
Convex Finance extends gains after facing short squeeze
Convex Finance (CVX), the DeFi token, extends its rally to double-digit gains and raises 26% on Monday, as seen on Binance. Data from Coinglass shows large volume liquidation of short positions, to the tune of $722,000.
XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty
XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).
Quant price poised for a short-term sell-off amid potential early-holder selling spree
Quant (QNT) price could have a short-term downward pressure. Data from Lookonchain suggests that an early holder has deposited 118,008 QNT tokens worth $9.78 million into the Kraken exchange.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level
Bitcoin price is retesting its weekly resistance level of $67,147. Ethereum price finds support around $3,321, the price imbalance between $3,146 and $3,498. Ripple price faces rejection due to the key resistance level of $0.499.
Bitcoin: Has BTC found a local price bottom?
Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.