Bitcoin’s recent price action has grabbed the spotlight. Based on the weekly $BTC chart provided, Bitcoin (BTC/USDT) has shown a strong bullish surge, currently trading at $96,320.01, up 5.45% over the week. Let’s break down the technical indicators and what they might suggest for Bitcoin’s price trajectory in the coming weeks.
1. Strong Bullish Momentum
The weekly candlesticks show consecutive green candles, highlighting sustained upward momentum. A key support level at $49,000, from earlier weeks, sparked this rally. Bitcoin also broke past the resistance zone near $79,500, which now appears to be a strong support.
The Exponential Moving Averages (EMAs):
• EMA(7): $84,395.67 (short-term trend)
• EMA(25): $70,537.24 (medium-term trend)
Both indicate Bitcoin is trading well above these averages, signaling bullish strength.
2. RSI Nearing Overbought Territory
The Relative Strength Index (RSI) values (6, 12, 24 periods) are at 85.31, 76.51, and 70.29, respectively. These figures suggest that Bitcoin is in overbought territory, meaning a short-term correction might be on the horizon as traders lock in profits.
3. Volume and MACD Indicate Sustained Interest
The trading volume has surged, with buyers clearly dominating. The MACD (Moving Average Convergence Divergence):
• DIF: 7,911.83
• DEA: 4,324.07
Shows bullish crossovers and widening gaps, suggesting continued upside pressure.
Predictions for the Coming Weeks
1. Bullish Scenario:
• If Bitcoin holds above $79,500 and sustains its momentum, the next major resistance is at $102,000-$105,000. A breakout above this could lead to uncharted highs.
2. Bearish Scenario:
• With the RSI overbought, a pullback to retest support around $79,500 or even $70,000 could occur. Such corrections would be healthy before another leg upward.
Conclusion
While Bitcoin remains bullish, traders should be cautious of overbought signals. A measured correction could create opportunities for further gains. If it maintains its current structure, the long-term trend remains positive, with a strong possibility of hitting new highs.