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Bitcoin has seen a huge rally in a short period of time. It is currently holding support at $65,000, is there more to come from $BTC? Or is this the time for a pullback and some consolidation?
Bitcoin's fate changes quickly
Bitcoin has been acting like a runaway train for the past few days. The German government’s selloff is now over, and institutional money is pouring back into spot Bitcoin ETFs, with inflows reaching $1.9 billion for the eighth straight day.
The market sentiment has changed dramatically as the Bitcoin price has surged. The fear and greed index has risen from 28 last week to 69, and this week it has completely returned to the greed index.
Nonetheless, Bitcoin looks slightly overbought after its recent price surge and is probably due for a short-term pullback. If good support is found at the $63,000 and $61,000 price levels, the $BTC price could decline again.
$65,000 is a strong barrier for further growth.
Source: TradingView
The daily chart above shows the extent of the bullish pump. However, the $65,000 resistance is a strong barrier to further growth, and we expect the price to be rejected here. The Stochastic RSI is above the daily time frame, and it needs to fall again before new bullish momentum can be generated to push the price back up.
Therefore, a relatively small pullback is possible, perhaps with the price returning to $63,000, or even a deeper correction to $61,000. The rising trend line can also act as a support line. The price has bounced from this line since October 2023, and now that $BTC is back up, we can expect it to continue to respect this uptrend.
Bitcoin Battle Range Midpoint
Source: TradingView
Zooming in a bit, we see that not only has the $BTC price returned to the range, it is now trying to break above the mid-range level, which makes the $65,000 resistance even more important.
Bitcoin Bull Flag Redrawn
But what could have a bigger impact is the bull flag reform. The plunge to $53,500 provided the third touchpoint needed to confirm this flag, and if we draw a parallel trendline to the top of the bull flag, we can see that $BTC price is not too far off from this at the moment.
A break and retest above the bull flag will likely create momentum to break above the upper range. Once the upper range is broken, the Bitcoin race begins. That said, there could be a pullback to take the top spot. Bitcoin rewards those who are patient.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
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