• 26 May, 2024
Market News Markets

Key Levels To Watch: Is Bitcoin Headed for $72,000?

Technical analysis reveals that Bitcoin is now on the brink of a bullish rally. Based on the data provided by analyst CryptoBusy, an intriguing pattern has been observed on the Bitcoin charts. The analyst spotted a bull flag pattern, which could result in a price surge.

The bull flag pattern is a bullish pattern constructed when the market undergoes sideways consolidation, starting from a green candle, looking like a flag or a pennant. In the case of BTC, the upper candlestick corresponds to the first rallying of the price from around $43,300 to almost $68000, which serves as a base for the flag pattern. The flag phase is characterized by further price movements that are much more controlled.

At the time of press, Bitcoin is trading around $63,483.36, hovering within the bull flag pattern. Key levels to watch include the resistance at the previous high of around $68,000 and the critical support level near $60,000. A breakout above the resistance could signal a continuation of the bullish trend. It could even propel Bitcoin toward new highs, and analysts are waiting for it to reach beyond $72,000. Conversely, a breakdown below the support level might indicate a reversal or further consolidation, challenging the prevailing bullish sentiment.

Bitcoin/USD 1-Day price chart, Source: Trading view

Besides the bull flag pattern, the price action has also witnessed a significant breakout above a long-term resistance trend line, implying a possible shift in market dynamics from bearish to bullish. According to CryptoBoss, an analyst, the formation of new support levels around the $62,000 to $63,500 range indicates the strength of the ongoing bullish sentiment. As per his analysis, BTC is experiencing a minor pullback, after which it is poised to reach the $72k level.

Technical indicators such as the stochastic RSI and MACD signal potential overbought conditions, hinting at a possible short-term price correction. The 1-Day ADX reading suggests moderate trend strength, indicating ongoing market dynamics in either direction.

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