Bitcoin’s short-term surge has more upsides than anticipated

Bitcoin’s price has held up the $9,000 range even after the hashrate fell by 25%+ after the halving. While the drop in hashrate indicated the inefficient miners switching off their equipment, the price’s stability indicates that the rest of the miners are comfortably profitable at this level.

Bitcoin One-Hour Chart

BTCUSD TradingView

With BTC breaking out of the parallel channel, the price looks to surge more. At the time of writing, Bitcoin has broken out of the parallel channel at $9,400 and is currently at $9,700. However, room to surge exists, at least up to $9,800. In an extremely bullish scenario, the price could retest the February levels at $10,000.

If the price continues to surge at this rate, it will hit the resistance [at $9,850] as seen above, which is the line that extends from May 08, all the way through May 14. Comparing this with the RSI indicator, it shows that RSI has formed a higher high, while the price has formed a lower high. This shows a bullish development in the works.

Hence, the price shows the potential for a surge of up to $9,850, which is roughly a 5% surge from $9,400. While this may happen in a couple of hours, the long term scenario of Bitcoin is extremely bullish.

Bitcoin’s Weekly Chart

BTCUSD TradingView

The current weekly candle has managed to surge above the multi-year sloping resistance, hence, the breakout will be extremely bullish, although slow in the first few weeks. If the weekly candle closes above this resistance [$10,000], then a huge hurdle for BTC would be cleared, at least until the next hurdle at $13,800.

With its reward effectively halved Bitcoin has become an even more scarce asset. Hence, the price of Bitcoin, according to the economic aspects should go higher. With rampant inflation across the globe, the chances of Bitcoin staying at this level are low.