Bitcoin rebounded yesterday after positive news from payments giant Mastercard and The Korean Teachers’ Credit Union. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin needs to clear $64,000 for the possibility of a rally:
- Bitcoin recouped its losses and managed to climb above the $62,500 resistance.
- Price is currently trading above $62,000 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $63.200 on the hourly chart of the BTC/USD pair (data from Kraken).
- 64. If there is a close above the $000 resistance zone, the pair could start a steady rise.
64. $ 000 Level Matters
Bitcoin experienced a good recovery wave above $62,500 after the $59,610 low it saw recently. Bitcoin even rallied above the 50% Fib retracement level of the downward move from the $66,980 high to $59,610 high. The price is now trading above $62,000 and the 100 hourly simple moving average.
However, it met resistance near the $63,000 and $63,200 levels and there is also a major bearish trend line forming with resistance near $63,200 on the hourly chart of the BTC/USD pair. The main breakout resistance is currently forming near the $64,000 level. This is 61% of the bearish move from $66,980 to $59,610. Close to 8 Fib retracement level.
A clear break above the trendline resistance followed by $64,000 could open the doors for a move towards the $65,000 level, possibly. The next major resistance is sitting near the $66,500 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break past the $64,000 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $62.200 level. The first major support is now forming near the $61,500 level and the 100 hourly SMA. A break below the $61,500 support could push the price towards the $60,000 support zone in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- MainSupport Levels – $62.200, then $61.500
- Main Resistance Levels – $63.000, $63.200 and $64,000
