Bitcoin surged last Friday and stayed firm throughout the weekend. The cryptocurrency broke through an important near-term resistance level, fueled by broad risk-on sentiment following Fed Chair Jerome Powell’s indication of upcoming monetary easing. It now stands at a critical juncture, where the next move will determine whether it has completed the medium-term consolidation that began in March.
Technically, the break of 62724 confirmed resumption of the rebound from 49008. The strong break of 55 D EMA is also a near term bullish sign. It’s possible that the corrective pattern from 73812 has completed 49008, after hitting 50% retracement of 24896 to 73812 at 49354.
However, to solidify the bullish case, Bitcoin will have to overcome the first hurdle at 61.8% projection of 49008 to 62724 from 57812 at 66288. Rejection by this level will keep the rebound from 49008 as just another leg in the corrective pattern from 73812. On the other hand, firm break of 66288 could prompt upside acceleration to 100% projection at 71528, and build up momentum for eventual breakout from the five-month range.
