- Bitcoin rebounds after testing support at $43,000 during the weekend session.
The breakout from the falling wedge pattern reinforces the uptrend toward $58,000.
Resistance is anticipated at $50,000, as highlighted by the 50 SMA and the 100 SMA.
Bitcoin dropped to $43,000 after failing to overcome the resistance at $52,000 last week. The weekend session was mainly bearish for the flagship cryptocurrency. Support at $45,000 and $44,000 was not enough to enact a trend reversal.
However, the drop to $43,000 appears to have been a blessing in disguise because bulls are currently coming out much stronger. Apart from the lower price level allowing more investors to join the market, a bullish technical pattern has formed on the 4-hour chart.
Bitcoin slightly above $46,400 after breaking out of a falling wedge pattern. The bullish pattern came into the picture as the bellwether cryptocurrency dropped from the all-time highs at $58,000. This pattern indicates a period of consolidation, leading to a massive breakout.
The breakout is anticipated above the upper trendline and signifies a weak bearish front as the bulls swing into action. If the breakout is confirmed, we can expect BTC to hit levels above $50,000 as buyers push for gains toward $58,000.
The bullish outlook has been reinforced by the Moving Average Convergence Divergence (MACD). Although the indicator is still in the negative region, it has a bullish impulse. For instance, the MACD line (blue) is crossing above the signal line, showing that BTC is in the buy zone.
On the other hand, it is essential to realize that breakout to $58,000 may delay because of the resistance at $50,000, as highlighted by the 100 Simple Moving Average and the 50 SMA. Moreover, Bitcoin must establish support above $46,000; otherwise, a breakdown could into the picture and push BTC to levels closer to $40,000.
Bitcoin intraday levels
Spot rate: $46,410
Relative change: 1,144
Percentage change: 2.4%
Trend: Bullish
Volatility: Growing
