The BTC rate has broken through important resistance on the way to ATH, but is already giving reversal signals.
What kind of resistance are we talking about?
Yesterday’s price was able to break through the downward trend since March 14th. The current daily candle is red, but so far it has successfully retested the breakout of both this trend and volume level at $70,780.
As long as the price is above these two supports, the ATH update on May 21-22 can be fast and impulsive. Particularly because pGiP works through impulse growth, the strength of the impulse is not blurred. And the goal of $73,635 is already very close. And from there - to the new ATH, taking into account the absence of trend and horizontal resistance nearby. The nearest important resistance is the upward trend from January 23, 2024 (marked with a dotted line) and the volume level of $72,046.
What reversal signal has now appeared on the asset’s chart?
The trend reversal indicator based on Thomas DeMark's candlestick analysis method gives an "Expensive" signal on the daily timeframe. Breaks of such signals on a daily basis occur in a bullish market and the price goes higher. But most often - at least through correction with a long squeeze. As already happened in early March. The “Cheap” signal on May 1-2 from this indicator worked perfectly, catching the entire spring correction.
We wrote in yesterday's review that#BTCstill has 1-2 days of growth left. And if the price does not update the ATH during these days, the update scenario will be delayed. But it will definitely not be canceled as long as the price is above the EMA of the 50 day TF (currently $64,413). This is an important support for the uptrend and if there is a long squeeze, it will most likely be towards it.
The BTC price volatility index is still in the process of reversing. A range with a minimal downward trend may be broken today. If the daily candle breaks, the Index will continue to grow for another 7-8 days. While working out the reversal and approach, first to 8, and then to 10-12 and even higher, the BTC price will show significant movements.
For now, there are more arguments that this will happen as part of an upward price movement. But let’s additionally analyze the dominance of BTC and USDT+USDC.
