Bitcoin‘s value maintains its position above the $70,000 threshold, buoyed by a slowdown in outflows from spot exchange-traded funds. The digital currency’s recent surge has market watchers anticipating another significant price rally which could propel its value to new record levels. In the midst of this momentum, a chart analysis shared by a notable cryptocurrency expert, TradingShot, on March 30 indicates a bullish trend that might lead to a peak of approximately $78,000.
Chart Analysis Foretells Bitcoin’s Ascent
TradingShot’s analysis suggests that Bitcoin’s technical patterns are mirroring those of the S&P 500 index, albeit in different scales and time frames. On a four-hour chart, Bitcoin shows a potential bullish crossover forming between its moving average and the 50-day moving average (MA50). This intersection could be a strong buying indicator, drawing from previous aggressive rallies seen in the S&P 500’s market history.
Technical Indicators Support Bullish Sentiment
Further technical scrutiny, including the Relative Strength Index (RSI), reveals overbought conditions for both Bitcoin and the S&P 500, indicating a potential continuation of the upward trend. This state is reinforced by the formation of an upward channel and a double bottom pattern, which traditionally signals additional buy potential. Bitcoin’s current positioning at the 0.786 Fibonacci retracement level, according to the S&P 500 fractal, points to an eventual climb to the 1.382 extension zone, aligning with the predicted $78,000 target.
Moreover, Bitcoin has consistently defended against drops below the $60,000 mark, emphasizing the market’s resilience and bullish outlook. Presently, the cryptocurrency trades above $70,000, marking a roughly 9% increase in value over the last week, with its current price at $70,180.