Bitcoin has been trying to strengthen since May 5, but bounced back from resistance in the $ 58,000 area. BTC is expected to find support around one of the two Fib levels. After that, the price should make a bullish breakout of the current pattern.
Bitcoin continues rebound
Bitcoin (BTC) bounced off the $ 53,000 support area on May 5 and has since tried to move north. This support is represented by the Fibo 0.5 retracement of the last bullish move (white).
The growth continued until the price reached a high of $ 58,360. It was formed near the 0.618 Fibo level of the correction of the last bearish move (in black).
From here, the BTC rate bounced off and began to decline.
Technical indicators appear to be relatively neutral. The MACD is holding in the green zone, and the RSI is above the 50 mark. However, both are showing a loss of momentum, which prevents the trend direction from being confirmed.
Schedule MTC. A source: TradingView
Short-term dynamics of BTC
On the short-term timeframe, you can see that Bitcoin reached the 0.618 Fib level of the $ 55,000 retracement and bounced off this support. Price has potentially formed a double bottom, as indicated by long lower wicks.
The next support is at the Fib level of 0.786 Fib retracement at $ 54,350.
While there is a possibility that BTC will drop to this level, we expect the market to form a rising low here and begin to rally. This forecast is based on our assumption that as a result of the rebound on May 5, Bitcoin launched a new impulse structure.
A falling wedge can be seen on the 30 minute chart. It is traditionally considered a bullish reversal pattern.
This demonstrates the readiness of the price for a bullish breakout and the beginning of an increase.
Thus, it is expected that Bitcoin will find support in the area of one of the Fib levels – 0.618 or 0.786 correction. After that, the price will make a bullish breakout of the Falling Wedge pattern.