Bitcoin Technical Outlook: Candlestick Patterns Hint at Potential Bullish Continuation
From a technical standpoint, the first half of 2023 has been excellent for Bitcoin, with one bearish month out of six. The current monthly candle is on course to close as a hammer candlestick off the key psychological $25,000-mark, trading around the $30,000 handle at the time of writing. Looking solely at the candlesticks and structure on a monthly timeframe, further upside seems possible, with a weaker dollar toward the end of Q2 likely to work in favor of the world’s largest cryptocurrency.
*NOTE: This forecast focuses on the technical side of Bitcoins outlook for Q3. Get the full picture with the key Fundamental and Macroeconomic Drivers to watch for Q3 by downloading the full Bitcoin forecast below:
Source: TradingView, Chart Prepared by Zain Vawda
Dropping down to a weekly timeframe, we can clearly see the staircase move higher since bottoming out in early November 2022. On the same chart, prices have broken out of a bullish flag pattern that was in play for some time, reinforcing the case for a possible test of the 100-day MA around the $32,775 mark. Should prices move in this direction, the risks of a pullback will likely rise based on structure and the presence of higher highs.
At this time, the bullish bias and momentum remain intact, with a weekly candle close below the most recent swing low around $25,900 needed to invalidate the constructive outlook in play.
Key Levels to Keep an Eye On:
Support Levels:
- $26618 (200-day MA)
- $25000 (Psychological Level)
- $22490 (50-day MA)
- $20000 (March 6 Swing Low)
Resistance Levels:
- $32528
- $34177
- $40000 (Psychological Level)
- $45500 (March 2022 Swing High Candle Close)
BTC/USD Weekly Chart
Source: TradingView, Chart Prepared by Zain Vawda
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Written by: Zain Vawda, Markets Writer for DailyFX.com
Contact and follow Zain on Twitter:@zvawda
