BTC/USD outlook: Bitcoin surges to new record high above $71,000
BTC/USD
Bitcoin is trading near new record high above $71000 early Monday, with steady ascend in past few sessions signaling continuation of larger uptrend, after a brief consolidation last week.
Bulls remain firmly in play and so far offset signals of correction on strongly overbought daily studies, as the bitcoin continues to benefit from a flood of cash into new exchange traded funds and growing expectations that the Fed will soon start cutting its interest rates.
Bitcoin advanced over 60% in 2024 and was the top performer in the market during the first months of this year.
The price is riding on extended third wave of five-wave cycle from $15434 (2022 low), with initial strong bullish signal expected on daily close above psychological $70000 barrier, which would open way towards $75000 zone (Fibo 300% expansion), violation of which to unmask $80000.
Broken $70000 and former top at $68911 reverted to initial supports, followed by rising daily Tenkan-sen ($65433).
Signals of rally’s stall and possible correction on overbought conditions persist and were reinforced by bearish divergence of 14-d momentum, which keeps such scenario on the table, however, traders are in the winner’s mode for now and still do not think of stronger profit-taking.
Res: 72000; 74767; 80000; 81215.
Sup: 71000; 70200; 70000; 66702.
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
