BTC/USD could soar to $59,500, with further gains likely to push prices to a new high near $62k, John Bollinger says
Bitcoin is trading near $57,900 as bulls attempt to push prices higher amid selling pressure. The top cryptocurrency is up just 1.24% over the past 24 hours and remains 3.5% in the red week-on-week.
Despite the struggle and formation of a bearish trend line, one analyst forecasts BTC price is set for more gains.
According to John Bollinger, the technical analyst who invented the Bollinger Bands indicator, Bitcoin price is set for an upside squeeze to a new high.
“Bitcoin is setting up an attempt at a breakout to a new high. $BTCUSD Still seems early to me; better to be on the alert than to miss,” he said.
“Note: Crytpos trade 7 days, so may require different Squeeze parameters. Need to research this more. Maybe 28 period BBs?”
Bitcoin price outlook
The Bitcoin (BTC) price remains above a bullish trend line following a corrective bounce off the lows of $50,350 on 25 March. The bullish engulfing candlestick that formed then saw BTC prices retest the $60k zone before another leg down to the trend line support.
The cryptocurrency is trading above the middle curve of 20-day Bollinger Bands, with a potential upward break likely to push prices to the upper curve at $61,150.
The daily RSI is above 50, while the price trending higher over the 50 SMA points to a bullish view.
On the 2-hour chart, BTC/USD remains capped below the upper boundary of a descending channel. The resistance line has restricted bulls since the retest of the $60,100 level.
Although the line has acted as a stiff hurdle, bulls are looking to breach it as they target a leg up to a descending trend line formed since the rally to the all-time high of $61,683.
The 2-hour MACD and RSI indicators support a positive outlook. The MACD’s bullish crossover is seeing it begin to increase within the bullish zone, while the RSI is looking to flip higher above 50.
If bulls keep prices above the 50 SMA ($57,707), a breakout to the channel’s resistance line could open up a run to the horizontal barrier at $59,500. The objective would then be to clear above $60k before attempting to crack the $62k mark.
On the contrary, failure to correct higher will invite selling pressure and see bears target $56,600. A breakdown from here and BTC/USD could touch lows of $55,000.