FX.co ★ Bullish setup in Bitcoin will be tested soon.

Bitcoin has broken above the short-term resistance trend line and above the $47,000 short-term resistance level. Price is making higher highs and higher lows now as it approaches the $50,000 resistance area.

Blue line - short-term resistance trend line

Red rectangle - horizontal resistance

Black lines - Fibonacci retracements

Bitcoin has retraced more than 50% of the rise from $29,000 to $52,000 and has broken above the short-term downward sloping trend line resistance. Price has formed a higher low at $39,500 and this zone is now important support. Breaking above the red rectangle resistance will be a bullish sign. If this happens we should expect price to reach close to its all time highs. A rejection at current levels if followed by a break below $39,500 will increase chances for a move towards $29,000 and lower. For now, it seems that bulls are regaining control of the trend, confirmation will come with the a push above $52,000.