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Bitcoin Price Rallies After Crucial Bullish Breakout

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Aayush Jindal

Key Highlights

  • Bitcoin price is gaining pace above $27,500.
  • BTC broke a major bearish trend line with resistance at $25,900 on the 4-hour chart.
  • EUR/USD is consolidating gains above the 1.0880 support.
  • The UK Consumer Price Index could decline from 8.7% to 8.4% in May 2023 (YoY).

Bitcoin Price Technical Analysis

Bitcoin price started a recovery wave from the $24,750 zone. BTC/USD climbed higher above the $26,500 and $27,000 resistance levels.

Looking at the 4-hour chart, the price was able to surpass the $26,500 resistance zone and a major bearish trend line with resistance at $25,900.

There was a clear move above the 61.8% Fib retracement level of the downward move from the $28,449 swing high to the $24,735 low. It is now trading above the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).

On the upside, the price is facing resistance near the $29,000 level. The first major resistance is near the $29,200 level (a multi-touch zone).

A successful close above the $29,200 level might spark another bullish wave. In the stated case, the price may perhaps rise toward the $30,000 level.

If not, Bitcoin might decline again and trade below the $27,500 support. The next major support is near the $27,200 level. If there is a downside break and a close below $27,200, Bitcoin might revisit the $26,000 zone in the coming days.

Economic Releases

  • UK Consumer Price Index for May 2023 (YoY) – Forecast +8.4%, versus +8.7% previous.
  • UK Core Consumer Price Index for May 2023 (YoY) – Forecast +6.8%, versus +6.8% previous.
  • Federal Reserve Chair Jerome Powell testifies before Congress.
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