In recent weeks, despite a weekly close below the 50-week moving average, Bitcoin has shown positive signs of a bullish movement. This raises the question of whether this is a sustainable rally or just a short-term recovery. The current price action suggests market optimism, but how stable is this trend?
Key Resistance Levels Hold the Key
Although Bitcoin's price remained below the crucial 50-week moving average, the price movement indicates bullish momentum. However, it is crucial for Bitcoin to break through key resistance levels, particularly the $60,000 to $63,000 range, and turn these into support zones. Only then can a sustainable rally be initiated. Otherwise, failure to break through this range could lead to a renewed decline.
Impact of U.S. Economic Reports
This week, important economic reports in the U.S. are scheduled, which could heavily influence the market. The decisions and announcements from the Federal Reserve (Fed) could play a decisive role, either boosting confidence in Bitcoin or fueling uncertainties. A favorable market environment, supported by positive economic news, could help Bitcoin grow beyond the 50-week moving average and start a sustainable upward movement.
Technical Patterns Suggest Potential Upside
Technical patterns like the “Bump and Run” reversal chart, currently visible with Bitcoin, suggest a potential continuation of the bullish trend. This pattern could indicate that Bitcoin is ready to break out upward. Nevertheless, investors should remain cautious and be prepared for false breakouts, where the move could turn out to be only a short-term recovery.
Risk Management, Potential Targets and the Need for Caution
Solid risk management is essential during this phase. Investors should be aware of potential risks and employ appropriate strategies to minimize losses. Despite the bullish signs, there is always the risk that the market could turn, leading to a rapid correction.
If Bitcoin manages to break through the $60,000 resistance, prices over $65,000 and even up to $72,000 could be possible, signaling a strong bullish phase. However, as long as Bitcoin remains below the key resistance levels, caution is advised—the current movement could be a “Dead Cat Bounce,” a short-lived recovery without long-term stability.
