Bitcoin has recovered its bullish mojo as it has posted two straight days of strong gains. These gains are coming on the back of the pump of
Dogecoin and a few other cryptos. Elon Musk, who has been associated with Dogecoin in the past, also updated his bio page on Twitter with the Bitcoin sign. This has apparently stirred up interest in the market once more, especially as Ethereum was able to pull close to the previous all-time highs as well.
The price action on the BTCUSD daily chart shows the presence of a double bottom pattern, which was confirmed with the break of the trendline by today’s move.
Technical Outlook for BTCUSD
Today’s 12% surge in Bitcoin prices moved the BTCUSD pair to the 37895.67 resistance, where the upside has stalled. Bitcoin prices need to step above 42,000 to re-establish the uptrend. This move needs to clear the resistance levels at 38988.48 (341.4% Fibonacci extension) and 40721.85 (361.8% Fibonacci extension) to be actualized.
On the flip side, a rejection and pullback from the current resistance brings in new targets to the south at 35470.75 and 32224.93, which are Fibonacci
extension levels at the 300% and 261.8% Fibonacci levels. 29961.71 is also a potential target to the south, being the site of the double bottom pattern.
BTCUSD Daily Chart