By Chris Hollingworth 
Bitcoin (BTC) has seen a 5% increase in value over the last 24 hours, experiencing a rally from a recent low of $76,450 to a high of $83,786 on March 12. The weekly chart for BTC shows that its price tested the 50-weekly exponential moving average (50W-EMA) indicator as support, indicating a long-term bullish position that has been maintained since August 2023. The 50 EMA level has consistently served as a support level for Bitcoin over the past 18 months, with a notable bounce off this trendline in September 2024 leading to new all-time highs.
Prior to the recent uptrend, Bitcoin’s low time frame (LTF) and high time frame (HTF) charts exhibited bullish divergences between price and the relative strength index (RSI) indicator. Bullish divergences occur when price and RSI move in opposite directions, suggesting an improvement in underlying bullish momentum that could potentially reverse a bearish trend. These bullish divergences were visible across various time frames, such as the 15-minute, 1-hour, 4-hour, and 1-day charts, enhancing the likelihood of a short-term rebound.
Bitcoin’s price action also demonstrated an inverse head and shoulders pattern on the 1-hour chart, with confirmation expected upon a candle closing above the neckline at $83,800. If this pattern is validated, Bitcoin could target a price range of $89,000, representing a 7% increase from the neckline. Fibonacci retracement levels further support this target, aligning with Bitcoin’s recent lower high and lower low.
On the downside, a drop below $78,500 could invalidate the current bullish setup and potentially lead to further price declines. Analysts, such as RektProof, anticipate Bitcoin’s price to consolidate near resistance levels between $86,000 and $88,000. Despite this, a strong demand zone at $74,000 to $70,000 may influence a subsequent drop in price to form new lows in the near future.
Overall, Bitcoin’s recent price movements and technical indicators suggest a mix of short-term bullish momentum and potential resistance levels that traders and investors should monitor closely.
