Bitcoin Opens Week In Positive Territory, Could Retest $58K

Bitcoin opens week in positive territory and could soon retest the $58K level, looking to recapture the record high levels after crashing to a three-week low in the previous session as we can see in our latest bitcoin news today.

The benchmark cryptocurrency was up by 4.70 percent before the London morning bell and hit a new intraday high of $47,500 after bouncing off the 200-4H simple moving average wave. The sharp pullback helped it shoot above the descending trendline resistance which comes as a part of the Falling Wedge Pattern. The traders perceive the Falling Wedges as bullish reversal patterns which form when an asset slips lower and forms a sequence of lower highs and lower lows. This ends up making to converging trendlines and traders realize a new bullish bias when the asset breaks the Wedge’s resistance that is usually followed by higher volumes.

BTC posted a similar resistnace breakout with the volumes on the 4-hour charts stabilizing as well with the move upside signaling that the cryptocurrency will post extended gains in the session ahead with the levels above $50K looking like the main upside target for the bulls. The convergence of 50-4H simple moving average and the resistance horizontal line near the $52,170 level could test the BTC bulls before they try to reclaim the ultimate primary wedge target. In the meantime, the support area of $43,000 and $45,000 needs to hold the floor and stop the bears from taking control of the risks of dropping BTC/USD rates to lower $40K or the upper $30K regions.

Overall, the early moves upside this week only pose a picture of the bears that are losing focus in the short-term which will help BTC sustain the recovery up until $50K in the best-case scenario. BTC’s recovery took cues from the recovery in the US-government bonds as Bitcoin opens week on a positive note , the cryptocurrency will remain healthy as Biden’s $1.9 trillion stimulus proposal goes through the House of Representatives.

In the meantime, Treasury Secretary Janet Yellen clarified that the office plans to spend all of the money and to stay on the plan with the Biden expansionary plans, as Econometrics stated.