Bitcoin Price Analysis: BTC bullish setup projects quick 17% gain

Bitcoin price has been supported by corporations’ broadening interest to use it as an investment alternative such as Tesla, Microstrategy, and Square. The endorsement of prominent figures like Paul Tudor Jones, Stanley Druckenmiller, and Howard Marks has sparked institutional demand for BTC.

Bitcoin price has plenty of upside in the coming days and weeks

Since the February 28 low, Bitcoin price action and underlying volume indicates that the 26% correction was used as a buying opportunity by retail, institutional and corporate investors.  

The bullish outlook is underpinned by the constructive base structure being formed on the 12-hour chart below, which could be a cup or a cup-with-handle formation. The better alternative for substantial gains post-breakout is for Bitcoin price to form a handle, thereby releasing the overbought condition shown in the relative strength index (RSI) and removing any remaining weak holders.

On the downside, essential support for a handle emerges at the head-and-shoulders bottom’s extended neckline, combined with the .382 retracement level and the right shoulder’s high. It equates to a BTC price range of $53,320 - $52,500.

Targets for the Bitcoin price breakout are the 1.382 extension level at $64,109 and then the 1.618 extension level at $67,684. Both extension levels relate to the base formed since the February high.

BTC/USD 12-hour chart

If the significant support mentioned above fails to hold, it will put the critical 23 twelve-hour simple moving average (SMA) in play at $51,890. A close below this support level on a 12-hour candlestick would indicate that another pattern is developing or that a more profound BTC price decline is needed before the breakout.