Cryptocurrencies extended the ongoing rally over the weekend and continue to gain at the start of a new week as well. Bitcoin is up over 3% on the day and around 7% higher since Friday. The most famous cryptocurrency is trading above $41,000 mark and at the highest level since April 2022. There are some factors contributing to this rally, including expectations for rate cut cycles to begin soon, which weaken US dollar, as well as expectations for approval of spot Bitcoin ETFs.
Taking a look at BITCOIN chart at weekly interval (W1), we can see that the coin managed to break above the psychological $40,000 handle earlier today. Gains continues and now price is testing the resistance zone in the $42,000 area, marked with 50% retracement of the downward impulse launched in November 2022 and over 60% above September 2023 lows. Bitcoin is trading at the highest level since April 2022. Should the good sentiment last and coin breaks above the $42,000 resistance, the next major zone to watch can be found ranging between 61.8% retracement and $47,500 mark.
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Source: xStation5
