Bitcoin Bearish Weekly Close: $76K Support Still Holds

The Bitcoin price suffered a lacklustre close below $77K on Sunday in the weekly chart. That said, the current support floor of $76K did hold, and the $BTC price is trying to bounce back on Monday morning. With the Federal Reserve interest rate decision on Wednesday, and a 25 basis point hike expected by the market, is the Bitcoin price about to drop out of its bull flag and head back down to the lows?

Breakout of small descending trendline

Source: TradingView

At least in the 4-hour chart, the $BTC price action looks reasonably bullish. The price has come back down to the bottom of the parallel channel, has bounced, and has broken out of a small descending trendline. Unlike previously (note the long wick to the upside) this time a couple of new candles have opened above the trendline, meaning that the breakout has been confirmed, at least in this short time frame.

It may be that the $BTC price comes back down to confirm the descending trendline again, and to perhaps come down a little further to retest the $77K support level, but generally this does look like a reasonably reliable breakout so far. $78,900, and then $79,500 are the short-term targets.

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