Bitcoin (BTCUSD) had made an upper reversal in the form of a head-and-shoulder formation below the record high of around USD 64,000 in April. The subsequent sell-off caused the price to collapse to a low of USD 28,600. Above this mark, the coin established a broad trading range that extends to $ 41,342.
Post Consolidation Breakout?
With the latest price surge, it sped from the lower limit of the congestion zone to its upper end within just a few trading days. There the cryptocurrency went into consolidation mode yesterday. We consider the medium-term chart image to be neutral within the established congestion zone. Only a sustained outbreak would provide a reliable indication of the direction of the next medium-term trend. Looking at the top, we consider the probability of a possible false outbreak to be increased. This is due to several other significant hurdles in the immediate vicinity that could be tested as part of an outbreak.
Extended long trigger range
These hurdles (38.2% fibonacci retracement, horizontal resistance, downtrend line from record high) form a resistance cluster at currently USD 42,465-43,300. In our opinion, a break above USD 41,342 would suggest a timely test of this cluster. Only if the USD 43,300 mark is subsequently surmounted over a period of several days would clearer potential be released in the direction of USD 46,700 / 47,000 and then USD 50,000 / 51,000. Looking at the bottom, the coin has potential short-term catch areas at $ 38,200 and $ 36,400-37,000. With a sustained slide below the last-mentioned zone, the technical picture would deteriorate in this time window.
Note:
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