Bitcoin (BTC) is flexing its muscles with a display of strength and volatility following a prolonged seven-week consolidation period.
The ongoing weekly BTC candlestick is already boasting a notable 9.30% gain and appears poised to conclude on a positive trajectory. Despite the long-awaited approval of the Bitcoin spot Exchange-Traded Fund (ETF), BTC’s price failed to surge as initially anticipated.
The news surrounding ETF inflows and outflows incited widespread panic among investors, briefly halting the momentum. However, recent developments indicate an upturn in ETF inflows, fostering a more positive outlook. Bitcoin’s price performance over the past week paints a promising picture, hinting at a continuation of the bullish trend witnessed in 2023.
Here are the key takeaways from the recent uptick:
BTC has surpassed the $42,289 mark, representing the midpoint of the preceding cycle’s 77% bear market crash. Furthermore, it has successfully converted the $45,156 weekly resistance level into a sturdy support base. Consequently, investors can anticipate the upward trajectory to persist, with a potential retest of the psychological $50,000 barrier within the next one to three weeks.
However, certain concerns linger regarding the recent price surge.
The volume accompanying the 9.30% surge this week is notably lacking, hinting at a potential false breakout that could ensnare long positions. Should the ongoing weekly candlestick close above $45,156, it would establish a higher high, maintaining the overall uptrend structure.
However, it would also result in a lower low on the Relative Strength Index (RSI) indicator, indicating a clear bearish divergence. As a precautionary measure, investors are advised to reserve some ammunition in the event of a BTC price retracement.
Key levels to watch for potential buying opportunities on dips include $45,156 and $43,823. A rebound accompanied by a surge in buying pressure could propel Bitcoin’s price towards the next significant weekly hurdle at $52,062.