Bitcoin has recently shown strong upward momentum, surpassing critical resistance levels at US$64,500 and US$65,000. This upward trend continued as Bitcoin surged past the US$66,000 mark.
This bullish sentiment pushed BTC to a new weekly high of US$67,200, indicating positive market sentiment. Currently, Bitcoin is in a consolidation phase, possibly preparing for its next move.
Stability and Support for Bitcoin’s Price
NewsBTC reports that Bitcoin’s price is retracing slightly towards the 23.6 percent Fibonacci retracement level, calculated from the recent surge starting from a low of US$64,281 to a high of US$67,200.
Despite this pullback, the BTC price remains well supported above US$65,500 and importantly, above the 100-hour SMA indicator, signaling buyer interest and market strength.
On the hourly chart for the BTC/USD pair, a key bullish trendline has formed, providing support around US$65,700. This trendline aligns closely with the 50 percent Fibonacci retracement level, reinforcing it as a significant support zone.
This technical setup suggests a strong foundation for Bitcoin to stabilize and resume its upward movement.
Resistance and Potential Price Increase
Immediate resistance is currently near the US$67,000 level. If Bitcoin breaks through this, it may face its first major resistance at US$67,200, corresponding to the recent peak.
Further resistance lies at US$68,500. A decisive move above this resistance zone could lead to further gains, possibly reaching the psychological and technical threshold of US$70,000 for many traders and investors.
However, as with any asset experiencing rapid price increases, there is a risk of downside corrections. If Bitcoin fails to maintain its position above the US$67,000 resistance zone, a correction may occur, with the nearest support around US$66,500.
A deeper decline could test the next major support level at US$65,700, coinciding with the trendline. Breaking below this level could lead to a test of the US$65,500 level, with failure to maintain this level potentially causing Bitcoin to fall further towards US$65,000.
Moreover, if selling pressure intensifies, Bitcoin could drop towards the US$64,200 support zone, signaling a broader retracement and possibly indicating a shift in market sentiment from bullish to bearish in the short term.
In this dynamic environment, it is essential for investors and market observers to monitor key technical indicators and market trends. The role of global economic indicators, investor sentiment, and advancements in blockchain technology cannot be overlooked, as they collectively influence the price of Bitcoin and the wider crypto market. (*)
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