Bitcoin Prices Surge Beyond Falling Wedge

From a peak of $63,369 to a low of $58,402, the price of bitcoin fell almost 7.5% on Monday, breaking below the falling wedge. Bitcoin finished the day at $60,293 after retesting key weekly support around $58,375, a 3.3% comeback. As of this writing, one bitcoin is trading for around $61,000, a little more than 1% increase over Tuesday.


Bitcoin may face challenges at many important levels if the weekly support level of $58,375 remains intact.

At about $62,000, you can see the bottom trendline of the falling wedge.

Close to $63,956 is the daily barrier as well as the upper trendline of the falling wedge.

The weekly barrier is $67,147 and the 61.8% Fibonacci retracement level is $66,631.

If Bitcoin's price manages to break past these obstacles, it could be able to retest the next weekly resistance level at $71,280.

Right now, on the daily chart, the Relative Strength Index (RSI) is in oversold zone, and the Awesome Oscillator (AO) is below its mean level. If the bulls want to pull off a successful recovery, the momentum indicators—RSI at 50 and AO at zero—must remain above their respective levels. If you're looking to cover your shorts or begin new longs, the relative strength index (RSI) is poised to leave the oversold level after briefly touching it. Assuming this plays out, the current rebound surge might gain momentum.

But pessimistic sentiment may continue if Bitcoin closes below $58,375 and establishes a lower bottom on the daily time frame. A 3% drop in Bitcoin's price, bringing it back down to its May 1 low of $56,552, may result from such an event.

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