Recently, the price of Bitcoin has shown positive momentum by breaking through critical resistance levels at US$64,500 and US$65,000. This upward trend continued as Bitcoin advocates kept pushing the price above the US$66,000 mark.
As a result, BTC reached a new weekly high of US$67,200, indicating strong bullish sentiment in the market. Currently, this leading cryptocurrency is in a consolidating phase, potentially preparing for its next move.
NewsBTC reports that the current price trend shows Bitcoin slightly retracing towards the 23.6 percent Fibonacci retracement level, calculated from the recent surge starting from a swing low point at US$64,281 to a peak at US$67,200.
Despite a minor pullback, the BTC price remains well-supported above the US$65,500 mark and notably above the 100-hour SMA indicator, indicating 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 closely aligns with the 50 percent Fibonacci retracement level from the same upward price movement, reinforcing it as a significant support zone.
This technical setup indicates a strong foundation for Bitcoin to stabilize and resume its upward movement.
Resistance and Price Increase Potential
Immediate resistance is currently found near the US$67,000 level. If BTC successfully breaks through this level, it may encounter its first major resistance at US$67,200, corresponding to the recent peak. Beyond this, heavier resistance lies at US$68,500.
A decisive move above this resistance zone could pave the way for further upward movement, potentially extending towards the psychological and technical threshold of US$70,000 for many traders and investors.
However, like any asset experiencing rapid price appreciation, the potential for downside correction is a relevant risk. If Bitcoin fails to maintain its foothold above the US$67,000 resistance zone, a correction may occur. In such a scenario, the nearest support would be around US$66,500.
Further downside, the next major support level to watch would be at US$65,700, coinciding with the trendline. A breach below this level could lead to a test of the US$65,500 mark. Failure to hold this level could cause Bitcoin's price to retreat further towards US$65,000.
Additionally, if selling pressure intensifies beyond this point, Bitcoin could see its value decline towards the US$64,200 support zone. Such a move would indicate a broader retracement and may signal a short-term shift in market sentiment from bullish to bearish.
Given these dynamics, it is crucial for investors and market observers to pay close attention to key technical indicators and market trends. The role of global economic indicators, investor sentiment, and advancements in blockchain technology cannot be overstated. These factors collectively influence the price of Bitcoin and the broader crypto market.
