Bitcoin Hovers Above $57K, Bulls Aiming for $60K Reclaim

The Bitcoin price continued its upward march on Wednesday, February 28th, 2024, rising over 3% to trade above $57,500. BTC has now gained for six straight days as bullish momentum returns following last week's crypto market sell-off. 

At the time of writing, Bitcoin was changing hands at $57,746.09, up 3.16% over the past 24 hours, according to CoinMarketCap data. The leading cryptocurrency remains on a bullish trajectory after bouncing from support near $51,000 last week.

At the same time, trading volumes on Bitcoin exchanges have declined over the past day even as the price edged up.

According to CoinMarketCap, BTC trading volumes fell 18% to around $39 billion. This suggests some skepticism still remains among investors despite the latest bout of bullish price action.

BTC 1-day Chart: CoinMarketCap

BTC Technical Outlook

Bitcoin's latest rally has pushed the Relative Strength Index (RSI) on the daily chart up to 83. An RSI above 70 typically signals overbought conditions and raises the chance of a pullback.

However, RSI can remain elevated during strong uptrends before a correction unfolds. Given Bitcoin's bullish momentum right now, RSI may go even higher before the rally shows signs of exhaustion. 

BTC 1-Day Price Chart: TradingView

Traders should watch for bearish RSI divergences or a drop below 70 to signal potential topping behavior. Overall, BTC remains in a clear uptrend above its rising 50-day moving average near $53,000.

Dips are likely to find buying interest from bulls eyeing a retest of all-time highs. Still, RSI is flashing a caution sign for the short-term.

On the other hand, the MACD indicator for Bitcoin shows the MACD line trending above the signal line and holding well into positive territory.

This suggests strong upside momentum behind the recent rally. The MACD histogram has also turned positive and is increasing, reflecting accelerating bullish momentum.

However, the MACD line is nearing the upper band which could foreshadow some consolidation or profit-taking ahead. Overall, the bulls remain in control as long as the MACD holds above the zero line.

But some cooling off appears likely given the overextended MACD reading. Upside thrusts often see pullbacks once MACD reaches these extremes before the overall uptrend resumes.

Conclusion

After rebounding strongly from last week's plunge below $50,000, Bitcoin seems to have regained its bullish momentum in the near term.

BTC will likely face resistance around $60,000 which rejected price advances multiple times earlier this month. However, if buyers can decisively push through this level, it could set the stage for a retest of all-time highs near $69,000. 

BTC remains correlated with risky assets like tech stocks which could limit gains if equity markets see increased volatility from surging yields. However, Bitcoin's long-term adoption story remains intact.

With rising inflation burnishing its reputation as "digital gold", institutional inflows will likely continue driving the next leg higher. But expect some choppiness in the coming weeks as the Fed tightening path adds to market uncertainty.