Bitcoin (BTC/USDT) Technical Analysis: Bullish Continuation in Progress

Overview

Bitcoin's price action on the 5-minute (5M) chart indicates a strong bullish momentum. The cryptocurrency is currently trading within an ascending channel, with a recent breakout above a key resistance zone. The price movement suggests that BTC may revisit this zone to confirm it as a new support level before continuing its upward trajectory.

Key Technical Indicators and Analysis

#1. Price Action and Support-Resistance Dynamics

The price has successfully broken through a significant resistance zone (marked in grey), which previously acted as a supply area. As Bitcoin moves upward, the next expected move is a potential retest of this grey zone, which could serve as a confirmation of support before the continuation of the rally.

#2. Exponential Moving Average (EMA) Confirmation

The 50 EMA (orange line) is approaching a breakout above the grey zone. If the 50 EMA crosses above this zone and holds as support, it will reinforce bullish sentiment and validate buyers’ strength in the market.

#3. Uptrend Confirmation within the Ascending Channel

The market structure has shifted bullish, forming higher highs and higher lows, indicative of a strong uptrend.

BTC is respecting the ascending trendline, with price action moving in alignment with the channel's trajectory.

A successful retest of the grey zone and a bounce off the trendline will further solidify the continuation of the uptrend.

Trade Setup and Potential Scenarios

Bullish Scenario: If BTC revisits the grey zone and finds strong buying pressure, a rally toward $88,800 - $89,200 (upper channel resistance) is likely.

Bearish Rejection: If BTC fails to hold the grey zone and breaks below the trendline, a deeper correction toward $85,000 or lower may be expected.

Conclusion

Bitcoin is currently in a bullish structure, with strong upside potential. Traders should watch for:

A retest of the grey zone to confirm it as a new support level. The 50 EMA's movement above the grey zone, which would signal sustained bullish momentum. Continuation within the ascending channel, targeting higher resistance levels. Overall, BTC is poised for further upside if key support levels hold. However, traders should remain cautious and monitor price action for confirmation before entering long positions.