Bitcoin has experienced a massive surge in a short period of time. Currently holding support at $65,000, the question arises: is there more to come from BTC, or is it time for a pullback and consolidation?
Bitcoin’s fortune has rapidly changed
It has been running like a train in recent days. The German government’s sales have been eliminated, and institutional money is returning to Spot Bitcoin ETFs – with eight consecutive days of inflows totaling $1.9 billion during this period.
Market sentiment has dramatically shifted as Bitcoin’s price has skyrocketed – the fear and greed index has moved from 28 (Fear) last week to 69 (Greed) this week.
However, Bitcoin appears slightly overbought after this recent price surge, suggesting it may be time for a short-term retracement. Strong support around the $63,000 and $61,000 price levels could potentially be where BTC’s price might return.
$65,000 Strong Barrier for Further Growth
Source: TradingView
The daily chart above illustrates the extent of the bullish pump. However, the $65,000 resistance level poses a strong barrier to further growth, and it would be expected for the price to be rejected here. The stochastic RSI is at the top of the daily timeframe, suggesting a potential pullback before renewed bullish momentum can push the price higher again.
Therefore, a relatively minor retracement could occur, possibly bringing the price back to $63,000, or even a deeper correction to $61,000. The upward-sloping trendline could also serve as support. The price has bounced from this trendline since October 2023, and now that BTC is back above it, it may be expected to continue respecting this bullish trend.
Bitcoin Battles Fluctuate Midway
Source: TradingView
By zooming in a bit more, it may become apparent that the $BTC price has not only returned to the range but is currently struggling to surpass the mid-range level. This also makes the resistance at $65,000 even more significant.
The Bitcoin Bull Flag Redesigned
However, what could have a greater impact is the restructuring of the bull flag. The rejection at $53,500 provided the third touchpoint necessary to confirm this flag, and by drawing a trendline parallel to the top of the bull flag, it can be noted that the $BTC price is not currently far from it.
A pause and a retest at the top of the bull flag would likely provide the momentum to surpass the series’ peak. Once it breaks above the range, Bitcoin starts its race. That being said, there could be a pull-back to come first. Bitcoin rewards the patient.
Disclaimer: This article is provided for informational purposes only. It is neither offered nor intended to be used as legal, tax, investment, financial, or other advice.