BTC/USD witnessed a notable rebound, closing the week with a clear bullish signal in the form of a hammer candlestick pattern based on Friday’s closing price. This pattern gains strength from its development at a significant weekly support of $38,809 and aligns with the overall uptrend observed since late 2022. The potential for BTC/USD bulls to dominate this week is highlighted, aiming to retest familiar weekly resistance near $45,968, previously encountering a bearish shooting star pattern in early January.
Examining the daily chart, the recent downward movement lacked substantial lower lows and lower highs, indicating the prevailing upside trend. The week concluded with the engulfing of ascending support-turned-resistance at $40,154, adjacent to horizontal support at $41,007 (now acting as support) and the 50-day simple moving average at $41,490. Last week’s moderate upward momentum left nearby support untested at $37,942.
The current technical landscape favors bulls for the week, with Friday’s closure above daily resistance reinforcing the positive sentiment. Traders may set their sights on the next daily resistance level at $43,888, anticipating further upward movement.
