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.