By examining the weekly chart of Bitcoin, we can notice that the bullish momentum seen in the previous days has stopped a little bit. Actually, there are some reasons behind this calmness seen yesterday and today after touching $5400 regions as follows:
1 – The 61.8% Fibonacci retracement of the entire upside wave that was topped out in the $20k meets $5400.
2 – SMA (moving average of 50-day) should have the ability to slow down the bullishness. From a purely technical perspective, moving average is a target of the bounce and since it was almost touched, we should witness some consolidation.
3- We don’t want to ignore the psychological role of $5000 and $5500.
Anyway, we see a strong probability of hitting $5500 territories since momentum indicators remain in a positive mode despite the strong bullishness seen this week.
Regarding technical objectives of Bitcoin, we do believe that the path will be cleared towards $8500 areas once bulls beat $5500.
Conversely, Bitcoin will fail to break the above-mentioned resistances if $3980 support couldn’t protect buyers.
Briefly, long positions are favored !!