BTCUSD Analysis: Tweezer Bottom Pattern above $26,121

FXOpen

Bitcoin price continues its bullish momentum from last week after touching a low of $26,121 on May 25, with strong upsides located in the range of $28,500 and $29,000.

On the hourly chart:

  • We can clearly see a tweezer bottom pattern above the $26,121 handle, which indicates a bullish trend.
  • Both the STOCH and STOCHRSI indicate overbought market conditions, which means that in the immediate short term, a decline in the price may occur.
  • The MACD crosses UP its moving average.
  • The relative strength index is at 56.95, indicating a strong demand for Bitcoin and the continuation of the buying pressure in the market.
  • Most of the major technical indicators give a bullish signal, which means that in the immediate short term, the expected targets are $28,000 and $28,500.
  • Bitcoin price is now moving above its 100-hour simple moving average and 100-hour exponential moving average.
  • The average true range indicates low market volatility with mild bullish momentum.

Bitcoin Bullish Continuation Seen above $26,121

The Bitcoin to USD exchange rate entered into a consolidation zone above the $27,500 handle, after which we can see the start of the bullish move.

On the daily chart:

  • A bullish harami pattern is visible.
  • The RSI remains above 50, indicating a bullish market.
  • The Bitcoin price is now trading above its pivot level of $27,802.
  • The short-term range is mildly bullish.
  • The horizontal resistance is broken.
  • Bullish price crossover is seen with the AMA50 and the AMA100.

A support zone is located at $26,391, which is a 14-3-day raw stochastic at 20, and at $26,624, which is a 38.2% retracement from a 13-week high.

BTCUSD is now facing its classic resistance level of $27,854 and Fibonacci resistance level of $27,894, breaking which the price will be able to move to $28,500.

The Week Ahead

The start of this week has been excellent for Bitcoin as its price remained above the $26,000 handle, touching a high of $28,374 on 29th May.

Bitcoin price is bullish above the $28,000 handle on the daily chart with the formation of an ascending channel, with the current support at $26,729, which is a pivot point's first support level.

The immediate expected target is $28,500, after which we may see some consolidation in the $29,000 zone.

At the moment, the price is correcting lower and trading near $27,915, which is a 50% retracement from the 4-week high/low.

We can see the formation of a bullish trend line from $26,121 to $28,056.

The BTCUSD is now facing resistance at $28,098, which is a 3-10 day MACD oscillator, and at $28,538, which is the first resistance point of the pivot point indicator.

The weekly outlook for Bitcoin price is $29,500, with a consolidation zone of $29,000.

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.

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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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