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In the short term, Bitcoin was at a fascinating crossroads. There was confluence at $56200 to mark it as a solid area of resistance, but the market has recently shot past it and will most likely retest it as support in the near future. BTC has been gradually rising from the $52,000 level in recent days, and the market may settle on its next move in the coming hours. The options expiry raised the prospect that the recent sell-off had created good support in the $52,000 region, and momentum had turned back in favour of the bulls.
Bitcoin 1-hour chart
Within the last two hours, Bitcoin had surged beyond a Fibonacci retracement level of $56,727 and a level of resistance of $56,289 on the 1-hour scale. A short-term descending channel created by Bitcoin was marked in blue, dating back to mid-March, when Bitcoin started its fall from above $61,000, and this boundary was also breached.
This breakout from the channel gives the bulls a technical goal of the channel’s top at $61,700 to shoot for in the coming days.
The technical indicators painted a picture of increasing bullishness behind BTC, and breaking through the aforementioned supply area will likely see BTC return to $60,000 in the coming days.
Following the escape, the RSI soared into overbought territory, oscillating around the neutral 50.
As BTC surpassed $53,800, the 20 EMA (white) crossed over the 50 EMA (yellow), indicating a change in momentum to bullish.
The Chaikin Money Flow was also on the verge of increasing above +0.05 to suggest nett capital flow into the markets, suggesting intensified buyer pressure. The OBV was in a short-term uptrend, but there was still room overhead to reverse the previous week’s sale value.
This breakout had a high market rate and was impossible to be a phoney upward leap in search of liquidity. A retest of the $56,800-$57,000 range would be an ideal entry point for a long spot, with a stop loss at $56,200. The next resistance thresholds are $58,000, $59,200, and $60,600, which are called take-profit levels.