BTC/USD PRICE OUTLOOK: BITCOIN EYES POTENTIAL BREAKOUT ABOVE PRIOR RECORD CLOSE
- Bitcoin has grinded higher over recent trading sessions to have another look at its record close
- BTC/USD price action could advance sharply if bulls can invalidate nearside technical resistance
- Check out the basics of technical analysis or take a look at this guide to day trading Bitcoin
Bitcoin bulls were able to muscle the cryptocurrency 3% higher last week with the help from a broadly weaker US Dollar. The latest influx of Bitcoin buying pressure has started to fizzle out, however, as BTC/USD price action struggles to surmount its 13 March record close. This area around the $61,200-price level stands out as a daunting technical obstacle for Bitcoin bulls to overcome, but there appears to be evidence of building upward momentum.
BTC/USD – BITCOIN PRICE CHART: DAILY TIME FRAME (27 DEC 2020 TO 12 APR 2021)
Chart by @RichDvorakFX created using TradingView
Bitcoin prices have been guided higher in large thanks to critical trend support, which still shows potential of bolstering the crypto. Not to mention, the MACD indicator just formed a bullish crossover, and the 20-day simple moving average now has a positive slope. Eclipsing the prior record close near $61,200 could invalidate this technical resistance level and open up the door to fresh all-time highs for BTC/USD.
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That said, Bitcoin breakout potential remains mired by bearish divergence on the relative strength index. BTC/USD price action also might struggle to maintain altitude above its upper Bollinger Band. This could be negated by an acceleration in upward momentum and Bollinger Band expansion that would likely correspond. To that end, a spike higher that is accompanied by an upswing in volume could give the breakout more merit. On the other hand, another failed attempt at taking out nearside technical resistance could see Bitcoin stumble toward month-to-date lows and 50-day simple moving average.
— Written by Rich Dvorak, Analyst for DailyFX.com
Connect with @RichDvorakFX on Twitter for real-time market insight
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