Bitcoin price has emerged from the recent consolidation around the 50% retracement of the April-July correction at $46,849 and the 200-day simple moving average (SMA) at $45,719, reclaiming the 2020 ascending trend line that had become influential on price since August 7.
Today’s breakout, if it holds, has the potential to stretch the Bitcoin price rally to the 78.6% retracement of the April-June correction at $57,173 in the coming days before striking formidable resistance framed by the February, March, April and May highs. At that level, BTC investors can anticipate a substantive pullback.
A bearish BTC development that may interrupt the Bitcoin price journey higher is the emerging bearish momentum divergence on the daily Relative Strength Index (RSI). A bearish momentum divergence occurs when the RSI does not confirm new price highs with a new high.