Bitcoin Erases Weekly Loss, Eyes Resistance at $22.6K

The leading cryptocurrency briefly topped the $21,000 mark, extending the recovery from the late Wednesday low of $18,892. At that price, the cryptocurrency was down nearly 9% on the week, according to chart provided by TradingView.

With the price bounce, the bear flag breakdown, a bearish continuation pattern confirmed on the daily chart earlier this week, has failed.

Failed bear flags or bearish patterns imply seller fatigue and often portend a bullish reversal. Several blockchain and technical indicators are signaling a bottom.

The relative strength index on the 4-hour chart has crossed into bullish territory above 50 in support of a continued move higher.

The focus is now on the resistance level of $22,600, which is the moving average of 200 weekly charts. After that, the next major hurdle would be at $25,338, the low reached on Coinbase on May 12.

The outlook will flip bearish if Wednesday’s low of $18,892 is breached.