Bitcoin (BTC) appears to have shrugged off the heavy selling of last weekend into Monday, and is continuing to recover in price. Currently battling strong resistance around $57,000, can $BTC break through to the next big resistance at $61,000?
Bulls take back control
Bulls have taken back control of the Bitcoin price, and not in a tentative way. Since last weekend’s collapse, when the only asset available to sell for hedge funds trying to vacate their yen carry trade positions was Bitcoin and crypto, the king of the cryptocurrencies has rebounded in fine style.
Up 16.5% since that $49,000 bottom, $BTC could even be staging a v-shaped recovery. Currently trading at just over $57,000, the $BTC price is battling hard with resistance at this level.
Possible $BTC rejection?
Source: TradingView
Zooming right into the short term time frame, it can be noted that the $BTC price is not only at horizontal resistance, but it is also at the downward-sloping trend line which began at the last local top of $70,000.
The stochastic RSI on this time frame is showing that it’s about to make a top again, therefore there is more of a likelihood that the price does reject, and that we see another dip, which does have the possibility to go all the way back to $52,000.
Potentially bullish weekly candle close
Source: TradingView
Nevertheless, on the much higher weekly timeframe, the Bitcoin revival can really be observed. In fact, the long candle wicks down across most of the bull flag, bears testament to how strong the buying is whenever the $BTC price comes down.
This current wick down is the longest so far. Of course, we still have to wait for the weekly close in order to see if this wick is maintained, but should the $BTC price close around this level, a hammer candle, or even a dragonfly doji candle would be extremely bullish for future price action.
One big negative here though is the stochastic RSI. A cross back down was caused by the heavy selling last week and into the weekend. However, once again, we need to wait for the weekly close to see whether this cross down is confirmed. Also, even if this indicator does come back to the bottom, a resulting cross up will then bring that momentum back under the $BTC price once again, buoying it upwards.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
