Bitcoin continued to rise yesterday and, as a result, its price increased by 2% and exceeded the $52,000 mark. But what is most surprising, the trading volume practically did not change against the background of reaching the local price high. The altcoin prices moved in different directions as if expecting a new strong movement from the first cryptocurrency.
Let’s take a look at the Bitcoin chart to understand how events may develop these days:
On Sunday, the Bitcoin price closed at $51,750 and broke through an important psychological level of $50,000. This breakout to the top was preparing for 2-3 weeks when the bulls were trying to take this level. Despite the fact that they managed to do this, we did not see a significant increase in trading volume and increased excitement. This continues to indicate market uncertainty and a wait-and-see strategy for most market participants.
In the last 7 days, we have seen a confident reversal of the first cryptocurrency chart. This allowed Bitcoin to stay inside the upward channel. Moreover, the price has already passed half of the way up and is trying to gain a foothold above the middle line of the channel. The upper border of the channel coincides with the last strong resistance level in the $57,000 – $59,000 range. If Bitcoin continues to move in waves within this pattern, then this week we can see it near these levels.
Candlestick patterns also indicate continued growth. So far, they have a good range and small shadows, which speaks in favor of a local uptrend. This is especially noticeable on the weekly timeframe, where the strongest bullish engulfing is seen with upside potential up to $58,000.
The indicators stopped showing anything meaningful. Almost all of them have been around the same level for a long time. This characterizes the abnormal calmness of the market and low volatility.
Against this background, the growth of Bitcoin to a local maximum in the range of $56,000 – $58,000 looks logical. To reach these levels Bitcoin only needs to grow by 10%. Therefore, any positive news for the crypto market can contribute to a strong jump of the first cryptocurrency to the indicated levels.