Bitcoin (BTC) is currently testing a key resistance level, with a strong close above this threshold poised to propel its ongoing rally. Ethereum has successfully surpassed its resistance, indicating potential upward movement, while Ripple nears its critical resistance level, where a breakout could signal a possible recovery.
On Thursday, Bitcoin found support near its 200-day Exponential Moving Average (EMA) at $60,217, subsequently rallying by 9.7% over the next four days to retest the psychological level of $66,000. As of Tuesday, Bitcoin is trading slightly lower at around $65,700.
Should BTC break and maintain a close above the $66,000 mark, it may continue its upward trajectory toward retesting the July 29 high of $70,079.
Technical indicators further bolster Bitcoin’s bullish outlook. The Moving Average Convergence Divergence (MACD) has indicated a bullish crossover on the daily chart, with the MACD line (blue) crossing above the signal line (yellow), generating a buy signal on Monday. The rising green histogram bars above the neutral zero line also suggest that Bitcoin’s price could experience further upward momentum.
Additionally, the Relative Strength Index (RSI) on the daily chart currently sits at 62, indicating that Bitcoin is not yet overbought, although it is approaching the overbought threshold of 70. Should it close in this overbought territory, traders may be advised to refrain from adding to their long positions, even if the rally persists. A retreat from overbought levels back into the neutral zone at 50 could signal a deeper market correction.
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