The vaunted world of cryptocurrencies is witnessing a stream of fluctuations as Bitcoin, the superstar of the virtual currency market, is steadily holding its grounds above the significant $64,000 market rate. However, if it can successfully overcome the resistance zone of the $65,650 bracket, a recovery akin to Ethereum may be on the cards for Bitcoin.
Having recently embarked on a minor resurgence, Bitcoin pushed its way above the crucial $65,000 barrier. However, the virtual currency is currently exchanging hands under the $65,500 mark and the 100-hour simple moving average. Nevertheless, on the short-term front, a contracting triangle with a resistance level at $65,400 is progressively taking shape on the hourly chart of the Bitcoin to USD pair (data feed stemming from Kraken).
A potential upward trajectory may be set in motion for the pair if it successfully surpasses resistance levels of $65,400 and $65,650. As Bitcoin tries to rise against the tides of resistance, it continues to grapple with several challenges.
Bitcoin’s cost expanded its downturn to turn a fall through the $65,000 bracket. The digital currency went so far as to knock on the $64,000 door. A pit stop at $64,050 was noted before the price began adjusting losses.
The rebound recorded a minor leap over the $64,500 mark. There was a climb past the 23.6% of Fib retracement level of the extended plunge from the dizzying heights of $67,255 down to the disappointing low of $64,050. However, the bears reinforced their grip around the precarious $65,500 zone.
With Bitcoin prices currently trailing below $65,500 and the 100-hour simple moving average, a minor contracting triangle with a resistance of $65,400 continues to build on the hourly BTC/USD chart. Looking up, a resistance remains near the $65,400 level and the triangle trend line while the first key resistance stacks at $65,650 (equivalent to the 50% Fib retracement level of the recent plunge from $67,255 peak to a $64,050 low). Further resistance may be encountered at the round figure of $66,000.
A decisive stride above the $66,000 resistance may prompt a steady ascent, thus pushing the price higher. Given such a scenario, the price may aim for the $66,550 resistance mark. More wins could urge Bitcoin to eye the $67,500 resistance in the coming days.
However, not all seems rosy for Bitcoin. An inability to ascend beyond the stubborn resistance of $65,650 could force it into another downward spiral. An immediate cushion of $64,850 stands firm in the face of downward pressures.
Major support lies at the $64,400 mark, with subsequent support morphing around the $64,000 zone. More losses could drive the price towards the $63,200 support range in the ensuing days.
Technical indicators throw some light on the current situation. The hourly MACD is now gradually retracting from the bearish zone while the hourly RSI (Relative Strength Index) for Bitcoin/USD has now surpassed the halfway mark of 50. The mammoth Support Levels stand at $64,400 and $64,000, chased by the formidable Resistance Levels at $65,400 and $65,650 respectively. The battle of bullish and bearish pressures continues as the cryptocurrency market impatiently waits for Bitcoin’s next move.
