Bitcoin Regains Traction, Why BTC Could Struggle To Continue Higher

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price was able to clear the $62,500 resistance against the US Dollar. BTC could correct lower if altcoins continue to gain momentum in the near term.

Bitcoin is facing resistance near the $63,500 and $64,250 levels.
The price is now trading well above $62,500 and the 100 hourly simple moving average.
There is a key bullish trend line with support near $62,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower if there is a downside break below the $62,500 support.

Bitcoin Price Gains Pace

Bitcoin price was able to clear the $62,500 and $62,650 resistance levels. BTC even managed to pump above the $63,500 resistance zone and the 100 hourly simple moving average.

The price even spiked above the $64,000 level, but there was no proper close. A high was formed near $64,327 and the price is now correcting lower. The price traded below the $64,000 and $63,500 support levels. There was a break below the 23.6% Fib retracement level of the upward wave from the $59,450 swing low to $64,327 high.

It is now finding bids near the $63,000 support zone. There is also a key bullish trend line with support near $62,500 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $63,650 level. The first major resistance is near the $63,800 level.

Source: BTCUSD on TradingView.com

The main resistance is still near the $64,000 and $64,250 levels. A clear break above $64,000 resistance may possibly call open the doors for a fresh rally. The next major resistance sits near the $65,500 level.

Fresh Dip In BTC?

If bitcoin fails to clear the $64,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $62,800 level. The first major support is now forming near the $62,500 level.

A break below the $62,500 support and the trend line may possibly push the price further lower. The next key support is near the $61,800 level and the 100 hourly SMA. It is also close to the 50% Fib retracement level of the upward wave from the $59,450 swing low to $64,327 high.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $62,500, followed by $61,800.

Major Resistance Levels – $63,650, $64,000 and $64,250.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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