Bitcoin found strong support on the 21 EMA, which is that yellow line around $56.5k about six weeks ago. Since then, it has been on a rally but recently hit some resistance near the red R1 line at $71.8k.
The momentum is still looking good for us, with the Stochastic RSI indicating bullish momentum pushing upwards. However, we can see that our blue line has slowed down a bit. We can expect BTC to face some resistance between $71.8k and $73.5k, which will challenge our previous highs.
Another good sign is that the 21 EMA (the yellow line) keeps rising, which is definitely positive news.
Looking at the price action, we have been forming a large parallel channel since hitting our lows in June 2022. The bottom of this channel has been acting as support, and the middle of the channel as resistance. In February 2024, we broke through the middle channel resistance, and the price pushed all the way to the top of the channel, which is now acting as resistance. Recently, the middle channel line has been held as support, giving us a clear range of what to expect.
We have been making higher highs and higher lows, showing a clear uptrend. One important thing to watch is whether we can surpass our previous high at $73.5k. If we can’t, it would mean forming our first lower high, indicating a possible trend reversal. Ideally, we want to see BTC break past that previous high to continue the uptrend or at least hold above the green S2 line at $56.5k to keep the trend going.
Key levels to watch:
Resistance: $73.5k (red R1 line)
Support: $56.5k (green S1 line)
Keep an eye on these levels as we move forward!