Markets
Emerging from bearish sentiment, optimism in the cryptocurrency market increases
The price of Bitcoin increased by almost 8% and surpassed many obstacles. BTC is now consolidating gains and could correct towards $65,000 in the short term.
- Bitcoin started a strong rally and broke above the $63,500 resistance zone.
- The price is trading above $65,000 and the 100 hourly simple moving average.
- There was a break above a key downtrend line with resistance at $61,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may correct gains, but the bulls may be active around $65,000 and $64,500.
Bitcoin price rises 8%
Bitcoin price remained strong above the $60,000 support zone. BTC formed a base and started a fresh rise above the $62,000 level. There has been a break above a key downtrend line with resistance at $61,500 on the hourly chart of the BTC/USD pair.
The pair rallied over 6% and broke through many hurdles near the Resistance of $63,500. It even broke above the $65,500 resistance. A new weekly high was reached at $66,411 and the price is now consolidating gains.
It is holding gains above the 23.6% Fib retracement level of the recent wave from the low $61,073 to the high $66,411. The price of Bitcoin is also trading above $65,000 and the 100 hour simple moving average.
Immediate resistance is near the $66,400 level. The first major resistance could be $66,850. The next key resistance could be $67,200. A clear move above the $67,200 resistance could push the price higher. In this case, the price could rise and test the $68,000 resistance.
If a close occurs above the $68,000 resistance zone, the price could continue to rise. In this case, the price could go up to $70,000.
Are drops limited in BTC?
If Bitcoin fails to break out of the $66,400 resistance zone, a downside correction could begin. Immediate downside support is near the $65,150 level.
The first major support is $64,500. If a close below $64,500 occurs, the price could start to decline towards $63,500 or the 50% Fib retracement level of the recent wave from the $61,073 low to the $66,411 high. Any further losses could push the price towards the $63,000 support zone in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining ground in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels: $65,150, followed by $64,500.
Major resistance levels: $66,400, $66,800 and $67,200.