Bitcoin Poised For Fresh Highs Or Major Reversal?

Bitcoin prices remain under rigorous scrutiny by global regulators who continue to warn investors about the inherent risks pertaining to major cryptocurrencies. However, despite rising contention between Bitcoin enthusiasts and Central Banks, BTC/USD bulls remain optimistic as key market players continue to express interest in adopting the virtual currency as an alternative method of payment.

Meanwhile, the anonymous nature of cryptocurrencies has been met with opposing views as fraudulent activity remains a primary concern for Central Banks worldwide, raising speculation that more stringent regulations and tighter restrictions may be implemented in the foreseeable future.

BITCOIN (BTC/USD) TECHNICAL ANALYSIS

After peaking at an all-time high of $61,760 earlier this month, prices temporarily retraced to critical support, before upward momentum prevailed. But after breaking above prior resistance of $54,527, the 38.2% Fibonacci retracement level of the March 2021 major move, prices surged once again, with the formation of an ascending channel suggestive that BTC/USD may be poised for a new high while the Relative Strength Index (RSI) on the weekly chart remains above 70, with Divergence indicating that the upward trend may be losing momentum.

Bitcoin (BTC/USD) Weekly Chart

Bitcoin (BTC/USD) Poised for Fresh Highs or Major Reversal?

Chart prepared by Tammy Da Costa, IG

With regards to the more imminent move, earlier today, Bitcoin prices temporarily fell below trendline support before bulls were able to recover, pushing price action back within the confluent zone, formed by the boundaries of the rising channel. Meanwhile, the 8-period Exponential Moving Average currently continues to provide additional support while the RSI remains within range.

Bitcoin (BTC/USD) 4 Hour Chart

Bitcoin (BTC/USD) Poised for Fresh Highs or Major Reversal?

Chart prepared by Tammy Da Costa, IG

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