Bitcoin managed to recoup its losses by climbing above $65,000. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin needs to break above the $66,350 zone to start a new rally in the short term:
- Bitcoin started a fresh increase from the $62,500 support zone.
- Price is currently trading above $65,000 and the 100 hourly simple moving average.
- There was a break above a key downtrend line with resistance near $65,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair could start a fresh increase if there is a clear close above $66,000.
Bitcoin Faces Resistance
Bitcoin started a fresh increase above the $64,000 resistance zone after the weekly close. There was a clear break above the $65,000 resistance and the 100 hourly simple moving average. There was also a break above a key bearish trend line with resistance near $65,000 on the hourly chart of the BTC/USD pair. The pair climbed above the 50% Fib retracement level of the main decline from the $68,762 high to $62,300 high.
An immediate resistance on the upside is near the $66,000 level. The first major resistance is near the $66,400 level. This is 61% of the main drop from $68,762 to $62,300. Close to 8 Fib retracement level.
66. The $350 Level Is Important
A clear break above the $66,350 resistance could likely open the doors for a fresh increase. The next major resistance is near the $68,000 level, where the bears might stop. An intermediate resistance for the bulls is likely near the $67,250 level.
Will Bitcoin Drop?
According to Jindal, if Bitcoin fails to break past the $66,350 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $65,200 level. The first major support is now forming near the $65,000 level and the broken trend line. Any more losses could lead the price towards the $64,500 level. The next major support is near the $64,000 level, below which the price could even decline below the $63,500 support zone.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
- Main Support Levels – 65.200 then $65,000
- Main Resistance Levels – $66,000, $66,350 and $68,000