BTC closed the previous week lower despite a positive reaction at the $26,500 support. Earlier today, the crypto is up almost 2%. Is this the long-awaited sign of a potential major rebound for bitcoin (BTC).
Bitcoin (BTC) bounces off critical support
The queen of cryptos has seen a 13% decline since the weekend of May 06. It thus closed the previous week lower, despite a positive reaction below the $26,556 support. The sharp weekly close below this level could have given a signal to change the bullish direction in the medium term. However, it looks like the buyers reacted on critical support. This could thus lead to a major rebound for bitcoin (BTC).
Moreover, the current macroeconomic circumstances in the United States seem to be in favor of safe havens, such as Gold and Bitcoin. Then, if the thesis on the end of the dollar is confirmed, the flagship crypto could also benefit from it. Thus, it is likely that the value of bitcoin (BTC) will go up to $50,000 in the future. However, several technical hurdles can be seen on the BTC daily chart.
Several obstacles to overcome
To confirm the major rebound scenario, the bulls will have to face several obstacles in the short and medium term. The nearest resistance is found around $27,831, and the other is a bit higher at $28,334. If bitcoin (BTC) manages to break through these levels, the last bulwark is in the zone between $29,129 and $29,853. A new bull-run will thus be possible provided that the price makes a clear break from these obstacles.
On the other hand, a bearish reaction on one of these resistance levels could mean more declines. Which is quite likely, as the 14-day RSI showed no change in balance. In this case, bitcoin (BTC) could look for a new DIP below $25,000, before a further rise.
Several positions therefore remain awaiting confirmation, but for the moment, buying bitcoin (BTC) at $26,678 could be possible.
Admission: $26,678;
Stop: $26,000;
Goal 1: $27,831;
Goal 2: $29,219.
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