Bitcoin bulls protect this critical price level. Again. Do not short BTCUSD

BTCUSD Technical Analysis: Key Bullish Breakout Signals

Bitcoin (BTCUSD) recently demonstrated a notable bullish breakout after defending the crtical price level of the anchored VWAP – purple line shown in the below chart.

Technical setup

1. Bull Flag Pattern: The chart shows a well-defined yellow bull flag pattern. This continuation pattern indicates a pause in the prevailing uptrend, often leading to a breakout in the same direction.

2. Triple Bottom Formation: On March 20th, a triple bottom was identified, establishing a strong support level. This pattern further solidifies the bullish sentiment.

3. Breakout Confirmation: The breakout from the bull flag was confirmed as prices surged above the pattern, accompanied by increased volume. This breakout is a strong indicator of the continuation of the uptrend.

4. Anchored VWAP: The Anchored Volume Weighted Average Price (VWAP) was set at $61241, which has acted as a crucial support level post-breakout.

5. VWAP 1st Upper Standard Deviation: Watch $63388. where profit takers may sell some at the 1st upper deviation of that anchored VWAP.

Key Levels to Watch

• Support Levels: The immediate support lies at the anchored VWAP of $61241, followed by the triple bottom support level around $60711
• Resistance Levels: The breakout has set new short-term resistance at the recent highs around $62713 and $63388 after that. A sustained move above this level could pave the way for further gains.

Market Sentiment and Performance

• Volume and Trading Activity: The volume has shown a marked increase during the breakout, reinforcing the validity of the move. Monitoring the trading volume is crucial for confirming future price movements.
• Performance Metrics: Bitcoin has shown a notable recovery with a daily increase of 1.91%, and the year-to-date performance stands at an impressive 128.06%.

The recent technical rebound in BTCUSD suggests a bullish continuation pattern, supported by the bull flag breakout and triple bottom formation. Traders should keep an eye on key support and resistance levels and monitor the anchored VWAP for potential entry and exit points. With a robust performance and increasing volume, Bitcoin remains an attractive asset for both traders and investors looking to capitalize on its upward momentum.

Stay updated with ForexLive.com for more in-depth analysis and trading insights on Bitcoin and other cryptocurrencies. TRADE BITCOIN AT YOUR RISK ONLY.

This article was written by Itai Levitan at www.forexlive.com.