Is BTC/USD Primed for Another Breakout?

BTC/USD PRICE OUTLOOK: BITCOIN EYES POTENTIAL BREAKOUT ABOVE PRIOR RECORD CLOSE

  • Bitcoin has grinded greater over current buying and selling periods to have one other have a look at its document shut
  • BTC/USD worth motion might advance sharply if bulls can invalidate nearside technical resistance
  • Check out the fundamentals of technical analysis or check out this information to day trading Bitcoin

Bitcoin bulls have been capable of muscle the cryptocurrency 3% greater final week with the assistance from a broadly weaker US Dollar. The newest inflow of Bitcoin shopping for strain has began to fizzle out, nevertheless, as BTC/USD worth motion struggles to surmount its 13 March document shut. This space across the $61,200-price stage stands out as a frightening technical impediment for Bitcoin bulls to beat, however there seems to be proof of constructing upward momentum.

BTC/USD – BITCOIN PRICE CHART: DAILY TIME FRAME (27 DEC 2020 TO 12 APR 2021)

Chart by @RichDvorakFX created utilizing TradingView

Bitcoin costs have been guided greater in massive due to critical trend support, which nonetheless reveals potential of bolstering the crypto. Not to say, the MACD indicator simply fashioned a bullish crossover, and the 20-day easy transferring common now has a optimistic slope. Eclipsing the prior document shut close to $61,200 might invalidate this technical resistance stage and open up the door to contemporary all-time highs for BTC/USD.

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That stated, Bitcoin breakout potential stays mired by bearish divergence on the relative energy index. BTC/USD worth motion additionally would possibly battle to keep up altitude above its higher Bollinger Band. This could possibly be negated by an acceleration in upward momentum and Bollinger Band growth that might possible correspond. To that finish, a spike greater that’s accompanied by an upswing in quantity might give the breakout extra advantage. On the opposite hand, one other failed try at taking out nearside technical resistance might see Bitcoin stumble towards month-to-date lows and 50-day easy transferring common.

— Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market perception

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