Bitcoin pushed back above $63,000 on Monday after a dip to $62,500, reclaiming the bull market support trendline and sitting above both its bull and bear market trendlines. The bounce follows 76 days of sideways price action that some see as accumulation after the crash from $82,000 to $60,000.
Reclaiming the trendlines
The move puts bitcoin back on the right side of the trendlines that have defined the recent range. The breakout of the bear market trendline in particular supports a bullish thesis for an impending rally. Being above both trendlines simultaneously is a setup that hasn't been seen since before the selloff began.
Inverse head and shoulders targets $76K
On the daily chart, an inverse head and shoulders pattern is forming, though the right shoulder is stretched. If the pattern completes, the measured move points to $76,000. That's a long way from current levels, but the pattern's existence suggests the sideways grind may be resolving upward.
Weekly chart and Fibonacci levels
The weekly chart shows bitcoin tapped a low of $57,600, which matched the 0.618 Fibonacci retracement level, and held above the bull market trendline. That low came during the recent pullback. On the downside, the 0.786 Fibonacci level at $40,000 is a potential support that's been widely cited on social media, though it's not immediately under threat.
Next resistance at $65,725
The first major resistance sits at $65,725. Momentum indicators, including RSI and Stochastic RSI, are pointing upward, suggesting the bounce has room to run. Whether bitcoin can clear that level will likely determine if the inverse head and shoulders target becomes realistic.
