After Bitcoin’s descent from its ATH about a month ago, the primary cryptocurrency has since made a quick recovery. Yesterday, Bitcoin once again approached the all-time high when it inched closer to $58,000, the asset almost made a new all-time high yesterday before it was sent Southward.
Bitcoin Price May Retrace in the Short-term
Bitcoin nearly rose to a new ATH yesterday but reversed at $58,150, which is just a few dollars away from the previous ATH. It appears that Bitcoin will eventually continue its uptrend. However, before then, it may first experience a short-term retracement.
The price action for Bitcoin has formed a double top pattern, which is a reversal signal. Also, both the RSI and MACD indicators are showing a bearish divergence for BTC. These signals could be an indication of weakness as the 6H chart (6 Hour) also confirmed the reversal.
The RSI produced the bearish divergence signals for three consecutive higher highs. Likewise, the MACD indicator produced a low volume candlestick. Since there are indications that BTC could retrace, the nearest identified support levels are at $53,600 and $52,200 respectively.
Bitcoin Price Could Surge Beyond $60k
Furthermore, Bitcoin is trading in an ascending channel on the 2H chart in a potential corrective swing. The aforementioned support levels line up with the middle and support lines of the channel respectively. The signals from both the indicators and chart patterns across the multiple time-frame analysis indicate a short-term reversal.
According to the wave count analysis, Bitcoin started a bullish swing in March. Therefore, the potential target for the arm is between $64,043 and $66,548. This means that the swing would take Bitcoin to a new ATH.
However, BTC is very close to the resistance line of the channel as indicated by the 2H timeframe. In the last 24 hours, Bitcoin has traded up by 2.73% and is currently at $56,644.