Bitcoin looks set to rally above 60kWe all know of the strong rally that catapulted to a fresh record high in March. Yet price action since appears to be corrective. Whilst we do not yet know if this is simply the first leg lower of a complex correction, or it is set to break to new highs - only time will tell. However, it appears set for a leg higher over the near term.
Volume retreated with prices since the March high, which is a typical characteristic of a retracement. Yet a final stab lower found support at the 100-day EMA, 38.2% and 50% retracement levels before a mini V-bottom formed. This also coincided with RSI (14) hitting oversold, which I define as below 40 during an uptrend.
The prices have since retreated lower from the rally back above 65k, and showing signs of stability above 60k. The retracement held above the 61.8% Fibonacci level and are now holding above the 50% level.
Bulls could enter live at market with a stop below 60k (or recent swing low) with an initial target at 65.5, a break above which brings 68k into focus - or the highs near the high-volume node.
