And during latest drop below $60,000, Bitcoin found help at $54,500. Short-term structural levels have improved, resulting in a strong rebound, with Bitcoin approaching $60,000 for the first time. BTC is doddering just under $59,000 at the time of publishing, struggling to stretch the optimistic leg beyond $60,000.

The rise to $60,000 was triggered by the creation of a growing wedge. This is a positive phenomenon that appears during an upswing. If the commodity rises to higher levels, it meets a wall, resulting in a drop as the bullish front becomes drained. The adjustment, nevertheless, does not extend all the way back down, allowing bulls to obtain higher protection.

There is some slight stabilization, but a positive reversal contributes to a breakout just above line. Meanwhile, the ascent to $60,000 and the all-time peak appears to have ground to a halt. On the 4-hour chart, the Relative Strength Index (RSI) indicates that Bitcoin has reached overbought values.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

If stability at $58,000 struggles to hold, the digital currency could drop to $54,500, which was a recent support level. On the same 4-hour chart, a death cross trend can strengthen the bears’ grip on the market.

When a lengthy moving average passes over a short-term moving average, it forms a golden cross pattern. On the 4-hour map, for example, the 200 Simple Moving Average (SMA) is now passing over the 50 SMA. The trend indicates that Bitcoin isn’t out of the forest yet, and that a return to a new record peak would be difficult.

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