Bitcoin (BTC) is bouncing back after last weekend’s sell-off. The price is climbing, currently battling resistance around $57,000. Can BTC break through to the next target at $61,000?
The bulls have regained control. After hedge funds sold Bitcoin to exit their yen carry trade positions, BTC has surged by 16.5% from its $49,000 low. This suggests a potential V-shaped recovery. Now, BTC is trading just over $57,000, facing tough resistance.
Short-Term Resistance and Potential Rejection
In the short term, BTC faces horizontal resistance and a downward-sloping trend line from the previous $70,000 peak. The stochastic RSI indicates it might top out soon. This could lead to a price rejection and a dip possibly back to $52,000.
Bullish Weekly Candle Close?
On the weekly chart, Bitcoin’s recovery is more apparent. Long wicks on the candles show strong buying whenever prices drop. The current wick is the longest, hinting at robust support.
However, we must wait for the weekly close to confirm this. If BTC closes around this level, forming a hammer or dragonfly doji candle, it could signal bullish future action. The stochastic RSI, which recently crossed down due to heavy selling, is another factor to watch. If it crosses back up, it could support a bullish trend.
