Bitcoin (BTC) has cleared its 20-day and 50-day Simple Moving Averages (SMAs) and Ichimoku Cloud, indicating a positive trend. However, there is one obstacle that the Bulls need to overcome before rallying Bitcoin’s price to around $92,000. Since its all-time high in March, BTC has hit the upper trendline of a potential Bull flag twice, but failed to break through it. The first attempt resulted in a false breakout on May 20, followed by a failed attempt on May 27. Now, on June 3, BTC is back at the crime scene. Breaking this trendline is crucial for the Bulls to achieve their target. If they fail again, an alternative scenario comes into play, where BTC’s correction and Bull flag pattern continue for several more weeks, potentially targeting $54,000 to $55,000. However, given the currently bullish chart and the successful rally above critical SMAs, this alternative scenario seems less likely. To confirm this, BTC needs to break back below the 20-day SMA, 50-day SMA, and Ichimoku Cloud. Until then, the chart indicates a bullish outlook. While the long-term expectation for BTC remains positive, with a potential price target of well above $100,000, clearing the upper trendline of the Bull flag pattern is the final hurdle for the Bulls.
Key Points:
- Bitcoin has cleared its 20-day and 50-day SMAs and Ichimoku Cloud, indicating a positive trend.
- The Bulls need to break through the upper trendline of the potential Bull flag pattern to rally Bitcoin’s price to around $92,000.
- Two previous attempts to break the trendline failed, with a false breakout on May 20 and another failed attempt on May 27.
- If the Bulls fail again, an alternative scenario of a longer correction targeting $54,000 to $55,000 comes into play.
- The currently bullish chart suggests that the alternative scenario is less likely.
- To confirm the alternative scenario, BTC needs to break back below the 20-day SMA, 50-day SMA, and Ichimoku Cloud.
- Until then, the chart indicates a bullish outlook for BTC.
- While the long-term expectation for BTC remains positive, clearing the upper trendline is the final hurdle for the Bulls.
