Key Takeaways:
- Bitcoin price is holding gains above the 50-week simple moving average (blue).
- BTC/USD is still following a crucial bullish flag with resistance at $66,500 on the weekly chart.
- The price could again dip below $60,000 before the bulls aim for a fresh increase.
Bitcoin seems to be forming a breakout pattern with resistance at $66,500. However, the bulls must protect $50,000 to avoid a medium-term downtrend.
Bitcoin Price Remains Stable Above 50-DSMA
In September 2024, Bitcoin started a decent increase from the $52,500 support zone. BTC reclaimed many key levels such as $55,000 and $56,500 to continue higher. However, the bears defended an upside break above the $66,500 and $68,000 resistance levels.
A high was formed at $66,587 and the price is now correcting gains. More importantly, the price is still following a crucial bullish flag with resistance at $66,500 on the weekly chart.
The weekly chart of BTC suggests the price declined below the $63,500 support zone. It tested the 50% Fib retracement level of the upward move from the $52,756 swing low to the $66,587 high and is well above the 50-week simple moving average (blue).
The current price action suggests that Bitcoin is still following a long-term uptrend, and the recent setbacks could be a part of a consolidation pattern above $50,000.
On the upside, immediate resistance sits near the $63,500 level. The first major resistance is near the $66,000 level. There is also a crucial bullish flag with resistance at $66,500 on the weekly chart. The bears might remain active neat the channel resistance and $66,000. If the bulls succeed in clearing the $66,500 resistance, it could be a strong bullish signal.
The next key resistance is forming near the $68,00 level. A close above the $68,000 resistance could set the stage for a fresh surge. In the stated case, the bulls could aim for a move above the $70,500 resistance. The next major hurdle sits at $72,000, above which the price could aim for $75,000.
Another Drop In BTC To $50K?
Conversely, Bitcoin might face rejection near the $63,500 level or $65,000. Immediate support on the downside is near the $60,000 level. The first major support is near the $58,000.
The next major support sits near the 50-week simple moving average (blue) at $56,000. A weekly close below the $56,000 level could spark sharp losses. The main support sits near the channel trend line at $50,000. Any more losses might send BTC toward the $38,500 level in the medium term.
Overall, Bitcoin is stable above the $56,000 and $50,000 support levels. However, BTC must soon clear $66,500 and $68,000 to avoid a major decline in the coming weeks.
The post Bitcoin (BTC) Uptrend Unshaken By Setbacks — Why? appeared first on CoinChapter.
