BTC/USD Bulls in the Driving Seat!

BTC/USD longs had a splendid week. The major crypto has added an eye-watering +10.7%.

You may recall that the FP Markets Research Team recently beat the drum for the pairing, documenting the potential for outperformance.

Weekly Resistance Cleared

The weekly timeframe’s technical landscape showed price action retested support on the weekly timeframe at $38,809 in January and chalked up a Japanese hammer candlestick pattern (bullish cue), and has been bullish since. Last week’s upside witnessed price take on offers around resistance at $45,968 and is on the verge of refreshing year-to-date highs beyond the $49,099 11 January high.

A weekly close north of $45,968 would help pave the way for BTC/USD bulls to target weekly resistance from $51,952 over the coming weeks. This is reinforced by the fact that the weekly timeframe shows that price action has been trending higher in the form of consecutive higher highs and higher lows since November 2022.

Break Daily Resistance to Reaffirm Upside

While we do have the weekly chart’s Relative Strength Index (RSI) testing overbought waters along with the daily chart’s RSI also seen fast approaching overbought space, for bulls to continue pressing north this week, resistance on the daily timeframe at $47,972 and the year-to-date high mentioned above will need to be cleared.

Therefore, were a retest of daily support from $46,331 to emerge, this could provide enough technical juice for buyers to enter long in anticipation of higher levels.

Alternatively, leaving the aforementioned support unchallenged, a breakout north of $47,972 and the $49,099 high may be worth keeping a close eye out for this week, a movement that could perhaps trigger breakout buying to target $50,000 and nearby weekly resistance highlighted above at $51,952.

DISCLAIMER:

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.