In a surprising turn of events, Bitcoin, the most influential digital currency, clawed its way back over the daunting $64,000 resistance barrier, where it had previously struggled to gain footing. The cryptocurrency juggernaut now finds itself grappling with new challenges hovering near the $65,500 and $66,000 zones.
Despite the solid footing above $64,000, Bitcoin has hit a stumbling block on its journey towards breaching the forbidding $65,500 resistance level, seemingly bereft of the momentum needed to make the leap. This comes even as the price hovers safely above the 100 hourly Simple Moving Average, an indicator often utilized by traders to determine trend directions in financial markets.
Wedged into this scenario is a critical contracting triangle, with its apex located at the $65,100 resistance spot on the hourly graph of the Bitcoin-US Dollar exchange pair. This could mark the starting point of a radical upswing, should it manage to shatter the $65,500 resistance barrier.
Taking a step back to survey the lay of the land, Bitcoin’s price has been staging an impressive comeback since finding a firm foothold above the psychological $60,000 mark. It scaled the $62,500 and $63,500 resistance levels effortlessly, with the confident stride of a bull carrying the price over the intimidating $65,000 threshold.
However, bears lurk in the shadows around the $65,500 zone, ready to pounce. An example of their influence was the recent apex formed at $65,598, followed by a downward adjustment in the Bitcoin price, although it remains steadfastly perched above the 23.6% Fib retracement level from the valley of the $59,666 low to the $65,598 peak.
A pertinent resistance level awaiting Bitcoin’s immediate attention rests at $65,100, embodied in the triangle seen in the BTC/USD pair’s hourly chart. Should the $65,500 resistance crumble, the journey to conquer the $66,000 resistance zone will be set. A breakthrough here could set Bitcoin on a steady upward trajectory towards the $67,500 mark.
Farther up the path, a significant resistance block awaits near the $68,500 zone. Beyond that, any gains might catapult Bitcoin towards the dizzying heights of the landmark $70,000 resistance level.
Should Bitcoin falter in its bid to surmount the hefty $65,500 resistance zone, there’s potential for a downward revision. Provisional support down this slope is poised near the $64,500 level, with a significant protective cushion at $64,000. Falling below this level could initiate a drop towards the 50% Fib retracement level from the $59,666 trough to the $65,598 top at $62,500. Any more losses beyond this might pull the price further down to the $61,200 support line.
To conclude, the moving average convergence/divergence (MACD), a trend-following momentum indicator, shows deceleration within the bullish area. Alongside, the relative strength index (RSI) for the BTC/USD pair hovers precariously close to the ’50’ mark, evoking neutrality in market sentiment. The market levels are poised for a rollercoaster ride, with significant support and resistance strata at $64,500, $64,000, $65,100, $65,500, and $66,000 respectively.
