BTC/USD closed out the week considerably off worst levels, delivering an unambiguous weekly hammer candlestick formation (the pattern is based on Friday’s closing price). Adding credibility to this bullish reversal pattern is where it developed: weekly support coming in at $38,809, as well as garnering reinforcement from the trend: the major crypto pair has exhibited an uptrend since late 2022. Therefore, BTC/USD bulls could outperform this week and reconnect with familiar weekly resistance around $45,968 (which you may remember welcomed price action in the shape of a bearish shooting star candlestick pattern in early January).
Daily resistance engulfed
From a daily perspective, the recent downside move failed to pencil in much in the way of any meaningful lower lows and lower highs. Therefore, the trend is still directed to the upside for now.
Friday also concluded the week engulfing ascending support-turned-resistance taken from the low of $40,154 and neighbouring horizontal resistance at $41,007 (now marked support), together with the 50-day simple moving average (SMA) at $41,490. This follows last week’s moderate upmove that left nearby support unchallenged at $37,942.
Bulls in favour
Ultimately, the technical pendulum is swinging in favour of bulls this week.
Friday’s close north of the daily resistance helps reaffirm the bullish vibe, with traders potentially targeting daily resistance coming in from $43,888.
Source: TradingView
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