BTC/USD longs had a splendid week. The major crypto has added an eye-watering +10.7%.
Weekly resistance cleared
The weekly timeframe’s technical landscape showed price action retested support on the weekly timeframe at $38,809 in January and chalked up a Japanese hammer candlestick pattern (bullish cue), and has been bullish since. Last week’s upside witnessed price take on offers around resistance at $45,968 and is on the verge of refreshing year-to-date highs beyond the $49,099 11 January high. A weekly close north of $45,968 would help pave the way for BTC/USD bulls to target weekly resistance from $51,952 over the coming weeks. This is reinforced by the fact that the weekly timeframe shows that price action has been trending higher in the form of consecutive higher highs and higher lows since November 2022.
Break daily resistance to reaffirm upside
While we do have the weekly chart’s Relative Strength Index (RSI) testing overbought waters along with the daily chart’s RSI also seen fast approaching overbought space, for bulls to continue pressing north this week, resistance on the daily timeframe at $47,972 and the year-to-date high mentioned above will need to be cleared.
Therefore, were a retest of daily support from $46,331 to emerge, this could provide enough technical juice for buyers to enter long in anticipation of higher levels.
Alternatively, leaving the aforementioned support unchallenged, a breakout north of $47,972 and the $49,099 high may be worth keeping a close eye out for this week, a movement that could perhaps trigger breakout buying to target $50,000 and nearby weekly resistance highlighted above at $51,952.
