After a strong weekend for Bitcoin, bulls have gained significant momentum, which is likely to keep the price high for the next few days. As the end of the month approaches, staying above the key resistance level could spark a strong rally in the coming month.
After Donald Trump backed Bitcoin at the Bitcoin Conference in Nashville, traders grew very optimistic, pushing BTC close to $70,000. However, bearish trends emerged before reaching this milestone. While the price remains near these levels, bulls might not show strong enough momentum to break through, with Bitcoin poised for a potential big move.
Bitcoin Faces Weak Resistance and Potential for a Strong Uptrend
The $70,000 resistance has proven weak as bulls struggle to maintain these levels, leading to significant pullbacks of over 18% to 20%. Currently, after pushing the price to $69,800 recently, buyers have weakened, causing traders to anticipate a slowdown in the rally. However, Bitcoin shows a hidden bullish divergence, which could signal the start of a strong upward trend.
On the weekly chart, Bitcoin has entered a bullish range after surpassing a support level that had acted as resistance for over a year. The price is now approaching a critical resistance zone between $69,750 and $71,916. If bulls can break through this zone, a bullish close for the month could occur around $70,800 to $71,500. Although the RSI indicates a strong bullish outlook, the formation of the Bollinger Bands raises some concerns.
Bitcoin Price Consolidation and Key Monthly Close
The Bollinger Bands are running parallel, indicating that Bitcoin’s price may continue to consolidate below the resistance zone. If bulls fail to push above this zone and gather more strength, BTC could remain below $70,000 for several more weeks until it reaches a crucial point. Another scenario is a potential drop to $62,000 or $61,000, followed by a rebound to $70,000, which might complete a ‘head & shoulders’ pattern. This could lead to a significant upswing if the price breaks out from the neckline.
The upcoming monthly close will be critical for Bitcoin’s price rally, as it will significantly influence the quarterly trading outlook.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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