- The bulls continue to defy the odds pushing the price past key resistance levels.
- Rising wedge pattern hints breakdown in the short-term.
Bitcoin has been trading upwards above the trendline as seen on the 4-hour chart. For the second month in a row, the largest cryptocurrency has stayed above EMA200. On the upside, the bulls continue to defy the odds pushing the price past key resistance levels. In fact, Bitcoin is almost proving right the experts who said at the beginning of April that BTC will trade at $6,000 within two months.
BTC/USD 4-hour chart
For a couple of days, $5,600 functioned as the key support while bulls pushed for a breakout. A movement past $5,800 placed Bitcoin on an upward trajectory where it did not just step above $5,600, it extended the move towards $6,000 but formed a high around $5,966.40 before correcting lower slightly to the current $5,893.
It is true to say that the ship heading to $6,000 has already sailed in spite of the bullish trend losing strength. Besides, according to the applied technical indicators, the price is likely to be pivotal around $5,900 in the coming sessions on Tuesday. However, we can expect Bitcoin to close the trading above $5,900.
Meanwhile, the RSI is trending higher than the levels displayed in April. A trendline connecting the lowest points shows the indicator at a steady rise. However, there was a dip from May highs around 85.64 to the current 61.67. The MACD, on the other hand, is holding a position in the positive region to show that the trend is bullish and the bulls are in charge.
Traders should, however, be aware of the forming rising wedge pattern that is likely to culminate in a sharp fall. Before the reversal Bitcoin could touch $6,000 and even trade above this level. A reversal would test the strength of the support areas at $5,600, $5,200 and $4,800.
Bitcoin Key Technical Indicators
Rising wedge pattern: Hints breakdown.
EMA200: $5,200 support