The cryptocurrency market is showing an exceptional performance this weekend. Bitcoin (BTC) could see an even bigger upside, with a potential upside of 8% from the current price.
Bitcoin (BTC) bounces off a key level
The period of correction since mid-April is soon coming to an end, as the queen of cryptos shows a significant rebound. Indeed, it rose 7% after hitting the $26,000 support. This level is particularly important because it is near two other support levels. The flagship cryptocurrency formed a double bottom pattern near this relevant area before heading back up.
Currently, bitcoin (BTC) is trading around $28,000 and could see an 8% upside from that price. Indeed, in the last major move seen over the weekend, BTC was down 8%. This happened during the week of May 8. After falling 5% during the weekend session, bitcoin (BTC) had fallen as low as $26,000 after performing a retracement from the weekend low.
This scenario could happen again as this cryptocurrency is one of the big winners of the weekend. Therefore, an 8% increase in bitcoin (BTC) from the current level is possible.
The level to watch for confirmation
Despite this bullish configuration, an obstacle must nevertheless be crossed. This is the upper part of the descending channel that has formed since the high of the year. On a daily scale, the 50-day moving average could also serve as a major resistance. These hurdles are near the area around $28,000. The breakout of this zone could therefore confirm the bullish hypothesis.
In this case, a buy position will only be possible if bitcoin (BTC) breaks above $28,000. If that happens, the top resistance level reached over the weekend could be an interesting buying zone.
Entry point: $28,253;
Stop: Monday low;
Goal: $30,500.
Considering the current move, the $27,500 support could also be seen as an interesting entry point.
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