Bitcoin’s price continues its bullish momentum from last week, and after touching a low of USD 26,394 on May 18, we can see a move towards a consolidation phase, after which we are expecting upsides in the range of USD 28500 and USD 29000.
On the hourly chart:
- We can clearly see a bullish Harami pattern above the USD 26,394 handle.
- Both the STOCH and Williams’s percent range indicate overbought levels, which means that in the immediate short term, a decline in the price is expected.
- The resistance of the channel is broken.
- The relative strength index is at 63.84, indicating a strong demand for Bitcoin and the continuation of the buying phase in the markets.
- Most of the major technical indicators are giving a bullish signal, which means that in the immediate short term, we are expecting targets of USD 28,000 and USD 28,500.
- Bitcoin’s price is now moving above its 100-hour simple moving average and its 100-hour exponential moving average.
- The average true range indicates low market volatility with mild bullish momentum.
Bitcoin: Bullish Continuation Seen Above $26,394
The Bitcoin-to-USD exchange rate entered into a consolidation zone above the USD 26,000 handle after which we can see the start of the bullish moves.
On the daily chart:
- Bitcoin’s price bullish continuation is seen above USD 26,394.
- The RSI remains above 50, indicating a bullish market.
- The Bitcoin price is now trading below its pivot level of USD 27,337.
- The short-term range is mildly bullish.
- MACD crosses up its moving average.
A support zone is located at USD 25,881, which is a 1-month low, and at USD 26,624, which is a 38.2% retracement from 13-week high.
BTCUSD is now facing its classic resistance level of USD 27,383 and Fibonacci resistance level of USD 27406, breaking which the price will be able to move to USD 28,000.
The short-term outlook for Bitcoin is mildly bullish, the medium-term outlook has turned bullish, and the long-term outlook remains neutral under present market conditions.
The Week Ahead
We can see that the Bitcoin chart on D1 timeframe remains well supported above the USD 26,000 handle, and the medium term continuation pattern is seen, with the current support at USD 25,817, which is a pivot point 3rd support point.
The immediate expected target is USD 28,000, after which we may see some consolidation in the zone of the USD 28,500 level.
The monthly RSI is at 49.54, which indicates a neutral market and the shift towards the consolidation zone in the medium-term range.
We can see the formation of a bullish trend line from USD 26,394 to USD 27,489.
The BTCUSD is now facing resistance at USD 27,448, which is a 38.2% retracement from 4 week low, and at USD 27,879 at which the price crosses 9-day moving average stalls.
The weekly outlook for Bitcoin’s price is projected at USD 29,000 with a consolidation zone of USD 28,500.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further with FXOpen.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
