Bitcoin (BTC) retests support - onward and upward from here?

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After Wednesday’s big upward price surge, the bitcoin (BTC) price paused for breath on Thursday. A successful retest of $65,500 has taken place. Will this be the platform for the next leg upward?

Price consolidation

Bitcoin entered much calmer waters on Thursday. After the 7.6% rally seen on Wednesday, the $BTC price is currently consolidating above the important support at $65,500. A retest of this support has been made, but there is still leeway for a descent to $64,000 or perhaps even lower.

Bull flag is shaping up

Source: Coingecko/TradingView

That said, a bull flag pattern is starting to take shape on the very short 1-hour time frame. Should this pattern continue, and the price stays within the flag boundaries, a break to the upside would be more likely than downward. A measured move for this pattern would take the price to around $71,000.

Bullish developments

Source: Coingecko/TradingView

On the much higher weekly time frame, $BTC is still looking very bullish. Volume is continuing to diminish, auguring an explosive move to come. Three more days remain in the week; firstly, for $BTC to stay within its bull flag, secondly, for the price to stay around the resistance level, hopefully to turn it into support, and lastly, for the stochastic cross-up on the weekly time frame to be confirmed.

Bulls need to take full advantage

A breakout and retest of the top of the bull flag early next week is likely to presage some explosive price action to the upside. Given that there is a cross up from the bottom of the stochastic RSI only every 6 months or so, this move will need to take full advantage of the momentum that it will bring. Failure to do so might mean that the price does not break the all-time high, or might do so, only to fail to confirm above. The continued success of this bull run will depend on it.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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