On the weekly chart, it is good to see just how long this bull move has been on Bitcoin. We see the 62000 exact price resistance was hit on March 13th. It is important to note when an exact price is hit like $62,000, it can’t be any clearer than that is strong resistance. There is also some resistance at $59,000 as well.
Bitcoin was already very bullish, but it really broke out on October 19th, 2020, and has been on a very strong move since. The first major pullback occurred in early January 2021 and we see strong resistance at $38,000. After the pullback price held the higher low which was a huge signal that the rally would continue.
February 1st the $38,000 resistance was taken out and the rally continued. Price then pulls back in late February and early March and we see $45,250 support holding nicely. The rally then continues, but not for long as $62,000 all-time highs were hit, and here we are present day in this latest pullback.
On the daily chart (left) 4-hour chart (right) we can see the recent downtrend after hitting $62,000 highs and we can observe the lower highs which signals short-term trend change.
In this recent pullback, we can observe the higher lows being made from the previous day’s low. This tells me a bounce is coming. Price currently is also overextended from the MA, meaning the price will need to get back to the moving average.
In the short-term I see Bitcoin having a rebound, but it will have to take out resistance levels of $56,000 to confirm the move is strong. $59,000 is the next level to get above after $56,000. It is very normal to have false breakouts, so this is why it is important to confirm certain levels are taken out first. If the price fails to break out here and we go bearish, then I would want to see March 23 lows hold ($52,992).