Bitcoin continues to gain bullish traction, as the cryptocurrency broke above a short-term descending trendline and is now testing key resistance levels.
The chart shows that BTC/USD has formed a double bottom pattern after finding strong support around the $77,100 level in early April, with price now in the midst of what could be either a corrective rebound or the start of a new uptrend.
Key Bitcoin Levels to Watch
A break above the current resistance zone, which is the neckline of the double bottom pattern, could confirm that a rally of the same height as the formation is due. The ceiling is around $89,000-90,000 and a bullish breakout could sustain a climb to the $103,000 area or until the record highs.
For bears, the recent low around $77,100 remains crucial support. A break below this level could accelerate the downside move and signal that the longer-term uptrend is in serious jeopardy. Dynamic support at the moving averages could also hold around $85,000.
BTCUSD Technical Indicators Analysis
The moving averages show mixed signals but suggest that the bullish momentum might still have some room to run. The 100 SMA (blue line) remains above the 200 SMA (red line), indicating that the path of least resistance is still technically to the upside. However, the narrowing gap between these indicators suggests a potential bearish crossover could occur in the near future if the recovery fails to gain traction.
The stochastic oscillator is moving higher, currently approaching overbought territory, suggesting that buying pressure has been dominant in recent sessions. Traders should watch for any divergence or potential reversal from overbought levels, which could signal a return of selling pressure.
The MACD (Moving Average Convergence Divergence) indicator in the middle panel shows improving momentum, with the MACD line crossing above the signal line and moving toward positive territory. This crossover suggests strengthening bullish momentum in the short term, but the indicator remains relatively close to the zero line, indicating that the momentum shift is still in its early stages.
Bitcoin Price Outlook
Bitcoin’s recent price action suggests we’re at a critical juncture. If BTC/USD can successfully break and hold above the neckline resistance, we could see a continued recovery toward the $100,000 levels or even the creation of fresh record highs.
However, the presence of the descending trendline from February highs suggests that bearish pressure remains significant. Rejection at current levels could trigger another leg down, potentially retesting the recent lows.
From a broader perspective, Bitcoin remains within a long-term ascending channel that has been in place since mid-2023, despite the recent correction. The current rebound could be seen as a test of whether this larger bullish structure remains intact. For the longer-term bullish case to strengthen, Bitcoin would need to establish a higher low and then break above the previous swing high.
Fundamental factors like expectations for crypto-friendly policies under the Trump administration continue to provide underlying support for Bitcoin, though the market appears to be waiting for more concrete developments before committing to another major bullish move. This altcoin appears to be functioning as “digital gold” or a safe-haven of sorts as it trails the precious metal in rallying during risk-off periods.
