• Bitcoin surges past $65,000, breaking through a previous key resistance level.

• The higher high invalidates the bearish trend theories based on lower lows.

• Bitcoin's retest of the 50-day moving average signals continued bullish momentum.

Bitcoin recorded high gains this week, crossing the $65,000 mark for the first time since its all-time high, defying earlier bearish predictions. Analysts forecasting a continuation of lower lows were surprised as the cryptocurrency reversed course, establishing a new higher high. 

https://twitter.com/DrProfitCrypto/status/1842920968051687831

Bearish analysts had cited the widely discussed pattern of lower lows and higher highs as a reason to expect further declines in Bitcoin’s price. However, the latest surge has shifted market sentiment, invalidating the previously bearish outlook. 

Historically, Bitcoin has seen periods of sideways movement, significantly when prices fell below crucial moving averages. This time, the price action found strong support at the 50-day moving average (MA50), which Bitcoin has respected in past market cycles.

This technical bounce off the MA50 further reinforced the bullish momentum, setting up Bitcoin for potential higher gains. Traders are now closely watching Bitcoin’s next key level, with many eyeing the $66,000 region as a short-term target. 

Source: Doctor Profit

Some traders who previously entered long positions in the $60,000 to $61,000 range are currently sitting on profits, with expectations for further upside. Premium members received a long signal around these levels last week, and a prior long at the $53,000 region also remains profitable.

Given the current trajectory, market participants are preparing for potential volatility as key economic data, including the PPI and CPI inflation reports, will be released later this week. These metrics could significantly impact Bitcoin's near-term price action.

Meanwhile, many traders are prepared to add more to their positions if the market revisits the $60,400 level, which is viewed as a key area of interest.

Bitcoin’s ability to surpass its previous high of $65,000 underscores a strong recovery and highlights the failure of bearish theories predicting a continued downtrend.

Traders and investors alike remain optimistic about the cryptocurrency’s outlook as it approaches the next resistance target at $66,000.