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28 May 2024 | FXGT.com

Technical overview – Bitcoin Consolidates Above Key Support, Eyes Breakthrough Above $71,000 Resistance

  • Recent Price Action: Bitcoin is down 3.5% over the past week, trading within a sideways range between $66,500 and $71,000. Any price dips have been quickly bought up, and the market has respected 4-hour key moving average channels, suggesting a continuation of the overall bullish sentiment. Bitcoin is up more than 12% for May, indicating a strong month-to-date performance.
  • Key Support Levels: The break above the $65,000 reversal level is viewed as a strong bullish signal, reviving the long-term uptrend. Maintaining above this key level during the past week has added another positive indication. The market’s structure remains bullish, trading above key moving averages across multiple timeframes. Short-term support is now identified at last week’s low of $66,500, which has contained any further declines and supported renewed bullish momentum.
  • Consolidation and Resistance: Bitcoin continues to challenge the psychological resistance area between $70,000 and $71,000. A breakthrough this area could accelerate momentum further, setting targets at the all-time high of $73,700 as the next immediate move. Failure to immediately breakthrough the $71,000 level will extend the sideways consolidation within last week’s price range.
  • Market Outlook: As long as Bitcoin remains above the key support area of $65,000, the market is expected to continue its bullish trajectory, potentially challenging and surpassing the all-time high of $73,700. Sideways consolidations above this level are seen as continuation patterns, indicating the market gathering momentum in preparation for the next upward move. Only a break below $65,000 would alter the bullish sentiment and lead to a re-evaluation of the market outlook.

BTC Daily Chart

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