- Bitcoin’s breakout from a bullish reversal pattern suggests a potential target of $67,380, up 9.75% from the breakout level.
- Despite upward momentum, Bitcoin faces resistance near $64,000, with the RSI flattening and MACD momentum showing signs of slowing.
- Key support stands at $60,000, while breaking $64,000 resistance could signal further upside or consolidation if resistance holds.
Bitcoin continues to show signs of bullish activity, driven by a recent breakout from a key price pattern. According to crypto analyst MikybullCrypto, Bitcoin’s reversal pattern and the occurrence of a golden cross suggest further potential for upward movement.
#Bitcoin breaking out of the bullish reversal price pattern.
MA golden cross also occurred.
Send it to $67k pic.twitter.com/MorR97Aeh0
— Mikybull 🐂Crypto (@MikybullCrypto) August 23, 2024
At press time, Bitcoin was trading at $63,821.99, reflecting a 5.43% increase within the past 24 hours. These developments point to the possibility of additional gains if market conditions align.
Bullish Reversal Pattern and Price Breakout
Notably, Bitcoin’s price chart displays an inverse head-and-shoulders pattern, a common indicator of a bullish reversal. This pattern appears to have completed, as the price has broken past the neckline, signaling potential for further gains.
Following the breakout, the measured target is identified near $67,380, which marks a projected increase of approximately 9.75% from the breakout level of $61,795. If the bullish momentum continues, this target level could soon be tested.
The moving averages further confirm the breakout, with the shorter-term moving average crossing above the longer-term one, indicating potential for more upward price movement.
Indicators Suggest Momentum, but Resistance Looms
Bitcoin’s recent price surge is accompanied by positive market indicators. The RSI is trending above the neutral level, standing at 57.76, which reflects the bullish momentum without reaching overbought conditions. However, the RSI has started to flatten, hinting at a potential slowdown in buying pressure.
The MACD shows a bullish trend, with its line crossing above the signal line. However, smaller histogram bars suggest momentum may be weakening. Despite the ongoing rally, the price is facing resistance near the $64,000 level, which could impact short-term price action.
Key Levels and Potential Pullback
Despite the bullish signals, Bitcoin is encountering challenges at higher levels. The $60,000 mark is serving as a crucial support level, while resistance is identified between $64,000 and $65,000, as observed from recent rejections.
If the price breaks through this resistance, further upside is possible, but signs of slowing momentum indicate that consolidation or a pullback could occur if resistance holds. Traders will need to closely monitor the price action and key indicators in the coming days to assess the next potential moves for Bitcoin.