Against the US dollar, bitcoin printed bold gains last week (approximately +17.0%) and refreshed YTD peaks of $31,443. After a fleeting visit to resistance-turned-support on the weekly timeframe at $25,381 the week before, a level accompanied by trendline support taken from the low of $16,326, bulls well and truly made their mark and stepped in last week. They lifted the major cryptocurrency to weekly resistance at $30,644 and, given fresh YTD highs, unmasked weekly resistance from $32,933.
Moving across to the daily timeframe, resistance made a show at $31,404 on Friday, which was accompanied by the Relative Strength Index (RSI) testing overbought space. This followed the unit engulfing the 50-day simple moving average, currently fluctuating around $27,175. As a note, in early February, this market shaped a Golden Cross: the 50-day simple moving average crossing above the 200-day simple moving average ($24,251), which is a trend reversal signal. Adding to this, both the weekly and daily timeframes have exhibited clear uptrends since bottoming in late 2022. Areas outside of current resistance on the daily scale to be aware of this week are resistance at $34,048 and support from $29,383.
Considering the above, the combination of weekly resistance at $30,644 and daily resistance at $31,404 will be key to monitor this week.
From the H1 chart, traders will acknowledge that the crypto attempted to find grip north of $31,000 late Friday but failed to establish a footing and left $32,000 unchallenged. This, technically speaking, was likely due to the resistance entering the fold on the bigger picture (see above). Lower on the H1, the widely watched psychological base $30,000 is certainly a level worth pencilling in the watchlist this week as it could serve as support.
On account of the above analysis, buyers have their work cut out for them this week in view of $31,404/$30,644 resistance on the higher timeframes. Nevertheless, the longer-term trend supports further upside, which could help facilitate a buy-the-dip phase off $30,000 on the H1 timeframe. Conservative buyers, however, will likely seek additional confirmation before pulling the trigger in light of current resistance. This may be as simple as monitoring the approach: an AB=CD approach may be enough confirmation for some harmonic traders, for example.
Moving across to the daily timeframe, resistance made a show at $31,404 on Friday, which was accompanied by the Relative Strength Index (RSI) testing overbought space. This followed the unit engulfing the 50-day simple moving average, currently fluctuating around $27,175. As a note, in early February, this market shaped a Golden Cross: the 50-day simple moving average crossing above the 200-day simple moving average ($24,251), which is a trend reversal signal. Adding to this, both the weekly and daily timeframes have exhibited clear uptrends since bottoming in late 2022. Areas outside of current resistance on the daily scale to be aware of this week are resistance at $34,048 and support from $29,383.
Considering the above, the combination of weekly resistance at $30,644 and daily resistance at $31,404 will be key to monitor this week.
From the H1 chart, traders will acknowledge that the crypto attempted to find grip north of $31,000 late Friday but failed to establish a footing and left $32,000 unchallenged. This, technically speaking, was likely due to the resistance entering the fold on the bigger picture (see above). Lower on the H1, the widely watched psychological base $30,000 is certainly a level worth pencilling in the watchlist this week as it could serve as support.
On account of the above analysis, buyers have their work cut out for them this week in view of $31,404/$30,644 resistance on the higher timeframes. Nevertheless, the longer-term trend supports further upside, which could help facilitate a buy-the-dip phase off $30,000 on the H1 timeframe. Conservative buyers, however, will likely seek additional confirmation before pulling the trigger in light of current resistance. This may be as simple as monitoring the approach: an AB=CD approach may be enough confirmation for some harmonic traders, for example.