Bitcoin rebounded sharply after falling to its two-week low during the weekend session, reinstilling hopes of an extended upside correction in the week ahead.
The flagship cryptocurrency added more than $5,000 to its valuation in the last three days of trading, hitting $33,793 on the US-based Coinbase exchange. Traders flocked back into the Bitcoin market after its price slipped below $30,000, validating the said level as concrete support ninth time since Janruary 4.
Meanwhile, the retracement pushed BTC/USD above its 20-period exponential moving average (20-EMA), hinting a short-term upside bias in the market. It is because of a recent fractal that sees the pair testing the falling resistance trendline every time after it closes above the 20-EMA, as shown in the chart below.
So it appears, the level BTC/USD is targeting on the falling resistance trendline is sitting between $35,500 $36,000. Meanwhile, the price ceiling comes as a part of a Falling Wedge structure that mainstream traders consider a bullish reversal pattern. That is also pushing the Bitcoin’s bullish bias in the sessions ahead.
Bitcoin Intraday Trade Setup
At best, Bitcoin could run-up towards $36,000 as traders extend their long targets at a couple of resistance levels en route. They include $33,659 and $35,156, as per the Fibonacci retracement graph from swing high of $41,500 and swing low of $28,813. That may leave traders with short-term profitable opportunities.
For starters, a close above $33,659 could have traders open a long position towards the next available Fib level of $35,156. Meanwhile, a breakout move above the $35,156-level could have them extend their profit-securing targets at $36,653. Nevertheless, traders should maintain a stop-loss target below $33,659 in the event of an unannounced bearish reversal.
If Bitcoin fails to advance from the $33,659 at the first place, then that could have traders open a short position instead—towards $31,807, with a primary downside target lurking at near $28,000.