With Bitcoin undoing bearish setup, $ 53,000 could be in its sights
Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
Bitcoin is in the midst of a key upward phase after struggling against a bearish pattern on its chart. After what was becoming the biggest daily gains since July 21, the BTC jump triggered a domino effect in the altcoin market.
With healthy conditions spread across a variety of its indicators, Bitcoin welcomed speculation of a recovery to $ 53,000. A few short-term hurdles were above the 23.6% Fibonacci level, but expect the bulls to be in cruise control.
At the time of writing this article, BTC is valued at $ 47,310, up 10% in the past 24 hours.
Bitcoin chart in 4 hours
The bearish BTC pattern came via a descending triangle pattern in the golden Fibonacci retracement zone. After a fifth attack at the lower trendline was defended, the buyers found the legs for a breakout in the opposite direction. This was practically confirmed once BTC closed above the 38.2% Fibonacci level on large volumes.
Based on the ups and downs of the model, a 9.9% increase can be expected from the break point at $ 43,500. This would push BTC above $ 48,000 after trading a double top setup. From there, BTC would face little to no hurdles to return to $ 50,000 due to the lack of high resistance levels.
A close above $ 53,000 on large volumes would even open the doors at $ 60,000, but expect a retaliation from sellers at $ 58,350.
In order to achieve this climb, BTC must record a daily close above its 23.6% Fibonacci level. As mentioned earlier, Bitcoin is also expected to break through a double top of around $ 49,000. If sellers regain control below $ 47,000, expect severe countermeasures.
BTC indicators presented a buffet of buy signals. The MACD extended its move above the midline after noting a bullish cross yesterday. The + DI of the Directional Movement Index gained further distance over the -DI – a sign that BTC’s uptrend was accelerating.
However, the Relative Strength Index’s surge into overbought territory presented chances of a near-term decline before the next upside step.
Bitcoin led the way at $ 53,000 after breaking north of its descending triangle. While its way forward is not without its challenges, buyers have laid the groundwork for a prolonged push.
Based on how BTC interacts with the $ 53,000 price cap, a return to $ 60,000 is possible over the next few weeks.