Bitcoin is separating itself from alternative cryptocurrencies, rising almost 20% in 7 days to $57,054 at the beginning of the week, bringing its market cap firmly beyond $1 trillion. The $57,000 technical resistance levels look to have been broken by the lead crypto. BTC rose from $28,550 in January to $64,899 in April, then falls to $28,800 in June, and is repeating the surge towards $65,000. The rally could extend as a fresh all-time high loom on BTC/USD beyond the 2021 high. Bitcoin’s technical outlook indicates the near-term trend is up, with higher lows bolstering the upward push. As of this analysis, the positive sentiment holds the BTC/USD pair beyond the $56,500 level. Aside from the technical, Bitcoin could be undergoing a regulatory relief rally from US SEC. Investors and analysts linked the rally to institutional inflows, with players anticipating the SEC’s approval of the first Bitcoin futures exchange-traded funds in the coming weeks.
Resistance Levels: $65,000, $61,000, $57,000
Support Levels: $53,000, $50,000, $47,000
BTC/USD Daily Chart: Ranging
BTC/USD Daily Chart
In early Monday trade, the Bitcoin rose to a fresh five-month high ($57,040), boosted by buy orders around the $55,000 zone and may contend with the $57,000/$58,000 barrier earlier than expected. Since momentum has previously stalled within the $50,000/$55,000 zone, the next session will be crucial for Bitcoin to maintain its gains. Former highs broken may revert to supports which should ideally contain dips.
Bullish push over psychological $55,000 barrier after breaking above the $52,944 (Sept. 7 high) and monthly cloud top ($53,000) triggered stops, pushing higher aided by positive sentiment. The rally in BTC/USD gears for a sustained break of the $57,000 and may extend as a fresh all-time high loom on BTC/USD beyond 2021 high. Expect some price corrections in overbought markets, which could result in buying opportunities.
BTC/USD 4-Hour Chart: Bullish
BTC/USD 4-Hour Chart
Since the BTC/USD pair has progressively gained a bid after bottoming earlier this year around the $30,000 zone, an upside extension is within the context of a shorter cycle. Fresh attempts to break above recent congestion and clear pivotal barriers at $55,400 showed initial signs of a stall, but the sentiment remains positive and keeps the upside in focus past the $56,000.
The sustained break above the $57,000 will expose targets at $57,600 and $58,300. BTC short-term favors dip-buying but caution on potential return and close below $53,000 level as this may risk drop below the pivotal 4-hour moving average (MA 50 at $52,500) and neutralize bulls. A decisive breach below the $53,000 support might send the pair crashing back to the $50,000 level. Any further losses could pave the way for a move toward the $47,000 level.