BTCUSD Analysis: Hammer Pattern above $25,838

FXOpen

Bitcoin price continues its bullish momentum from last week, and after touching a low of $25,838 on May 12, we can see a move towards a consolidation phase, after which we are expecting upsides in the range of $28,500-$29,000.

We can clearly see a hammer pattern above the $25,838 handle on the H1 timeframe.

Bitcoin today continues to move in a consolidation phase, after which we can see upside moves towards the $27,000 handle.

Both the STOCH and Williams’s percent range are in overbought zones, which means that in the immediate short term a decline in the price is expected.

We can also see the formation of a bullish harami pattern in the 15-minute and weekly timeframes.

The relative strength index is at 48.98, indicating a neutral demand for Bitcoin and the continuation of the consolidation in the markets.

Bitcoin price is now moving above its 100-hour simple moving average and its 100-hour exponential moving average.

Most of the major technical indicators are giving a bullish signal, which means that in the immediate short term, we are expecting targets of $27,500 and $28,500.

The average true range indicates low market volatility with mild bullish momentum.

  • Bitcoin price bullish continuation is seen above $25,838.
  • The RSI remains below 50, indicating a neutral market.
  • The Bitcoin price is now trading below its pivot level of $27,242.
  • The short-term range is mildly bullish.
  • Bitcoin price is ranging near the support of the channel and triangle.

Bitcoin Bullish Continuation Seen Above $25,838

The Bitcoin to USD exchange rate entered into a consolidation zone above the $25,000 handle after which we can see the start of the bullish moves.

There is a bullish trend reversal pattern with 200 and 50-period adaptive moving averages in the 2-hour timeframe.

The Aroon indicator is giving a bullish trend signal in the 30-minute timeframe.

We have also seen a bullish harami cross pattern located in the 15-minute timeframe.

A support zone is at $25,881, which is a 1-month low, and at $26,624, which is a 38.2% retracement from 13-week high.

BTCUSD is now facing its classic resistance level of $27,280 and Fibonacci resistance level of $27,303, breaking which the price will be able to move to $28,000.

The price is above the Ichimoku  cloud in the 15-minute timeframe.

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 on a daily chart, Bitcoin remains well supported above the $25,000 handle and there is a medium-term continuation pattern, with the current support at $25,281, which is a 50% retracement from 13-week high/low.

The immediate expected target is $28,000, after which we may see some consolidation in the $28,500 zone.

Monthly RSI is at 49.38, which indicates the neutral market and the shift towards the consolidation zone in the medium-term range.

We can see the formation of a bullish trendline from $25,838 to $27,690.

The BTCUSD is now facing resistance at $27,682, which is a 38.2% retracement from 4-week low, and at $27,786 at which the price crosses the 9-day moving average.

The weekly outlook for Bitcoin price is projected at $28,500 with a consolidation zone of $28,000.

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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.

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