Bitcoin Shows Bullish Momentum as it Breaks Out of Major Resistance Levels
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Bitcoin which has been moving downward for a while now has managed to break above its previous resistance level of $67,303.98 and has been showing signs of a potential rally ever since.
At the time of writing, the price of BTC is up by 0.04%, and it is currently trading at around $67,303.98. BTC’s price is showing bullish signs and also forming a base above the $64,554.45 resistance level.
The price is trading above both the bearish trend line and the 100-day Simple Moving Average (SMA) both on the 4-hour chart and the daily chart suggesting a bullish signal. This can be seen in the image below.
The Relative Strength Index (RSI) on the 4-hour timeframe also suggests that the price of BTC is bullish as the RSI line is trending close to the overbought session above the 50% level. According to the RSI, the price might make a little consolidation before continuing in the upward direction.
Furthermore, the 1-D MACD also indicates a bullish momentum as the MACD histograms are already trending above the zero line, while the MACD line and the MACD signal line have crossed each other and are heading towards the MACD zero line. If both the MACD line and the MACD signal line successfully cross above the MACD zero line, then the price is expected to move further upward.
1-Day Alligator: Finally, it can be observed that the price of Bitcoin has successfully crossed above the William Alligator indicator. Both the Alligator jaw and lip have crossed above the alligator teeth suggesting the start of an upward movement.
What Could Happen If Bitcoin Continues To Surge Upward?
There are two levels of resistance $67,267.79 and $71,337.80. If Bitcoin’s price continues to surge upward with this momentum and breaks above the $67,267.79 resistance level, the price could move further toward the $71,337.80 resistance level. A breakout from this resistance level would see prices rising significantly, probably to set a new high for the year.
What If The Price Declines?
If the price fails to break above these resistance levels mentioned above, Bitcoin will continue to move downward. There are currently three main support levels for BTC, which are $64,554.45, $60,137.39, and $56,540.64.
Should the price manage to continue in a downward direction, it will move toward the $64,554.45 support level. And if this level fails to hold the price, it might move even further to test both the $60,137.39 and $56,540.64 support levels.
BTC trading at $66,986 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
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