Bitcoin's Surge Over 8% Fuels Optimism for Potential Rise to $73,777

This week, Bitcoin surged over 8%, signaling strong buyer interest and setting the stage for a potential rise to the upper trading range limit at $73,777.

Source: www.fool.com

Bitcoin has surged by over 8% this week, indicating persistent buyer interest at lower levels. Typically, in a trading range, traders tend to buy near support and sell close to resistance. This implies a potential ascent towards the range's upper limit at $73,777, although surpassing this barrier might pose challenges.

Analysts' opinions diverge regarding Bitcoin's next move. Some anticipate a breakout to a new all-time high, viewing the correction as concluded, while others foresee a retracement towards the $60,000 support level and possibly even lower. Predicting the breakout direction with certainty from a range is challenging. Therefore, exercising caution and waiting for a clear trend to emerge before establishing significant trading positions could be prudent.

Analysis of Bitcoin's Price

Bitcoin has encountered resistance around $68,000, but a positive indication is that the bulls are holding their ground against the bears. This suggests bullish sentiment persists as they anticipate upward movement. The 20-day exponential moving average ($64,109) is trending upward, and the relative strength index (RSI) remains in positive territory, indicating a favorable path to the upside. Should the $68,000 level be breached, the BTC/USDT pair might aim to retest significant overhead resistance at $73,777.

BTC/USDT 4-hour chart. Source: TradingView

For bears to halt upward momentum, they must swiftly push the price below the moving averages. Doing so could lead the pair to decline to $59,600 and later to the intraday low of $56,552 from May 1st. On the 4-hour chart, both moving averages are ascending, and the RSI remains positive, signaling bullish control. The 20-EMA serves as crucial support on the downside. A bounce from this level could enhance the possibility of a rally above $68,000. Conversely, a break below the 20-EMA would indicate waning bullish momentum. In such a scenario, the pair might decline towards the 50-simple moving average and subsequently support around $59,600.

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