The price of Bitcoin has experienced a significant increase of almost 8% recently, breaking through several important resistance levels. Currently, Bitcoin is in a phase of consolidation and there is a possibility of a correction in the short term, with a potential target of around $65,000. This suggests that there might be some volatility ahead in the market.
Bitcoin managed to clear the $63,500 resistance area, signaling a strong upward movement. The price is now comfortably trading above $65,000 and the 100 hourly simple moving average, indicating a bullish sentiment in the market. Additionally, there was a notable breakthrough of a key bearish trend line with resistance at $61,500 on the hourly chart of the BTC/USD pair.
Potential Correction and Support Levels
Despite the impressive rally, there is a possibility of a correction in the price of Bitcoin. However, it is likely that the bulls will remain active near the $65,000 and $64,500 levels, suggesting that any potential downside movement may be limited. Immediate support is expected near the $65,150 level, followed by a major support level at $64,500.
Examining the technical indicators, the hourly MACD is showing signs of gaining momentum in the bullish zone, indicating a potential continuation of the upward trend. The hourly RSI for BTC/USD is also above the 50 level, further supporting the bullish outlook.
In terms of resistance levels, Bitcoin faces immediate resistance near the $66,400 level, followed by major resistance levels at $66,850 and $67,200. A clear breakthrough above the $67,200 resistance level could potentially drive the price even higher, with a target of $68,000 in sight. If the bullish momentum continues, Bitcoin could even rise towards the $70,000 mark.
On the flip side, if Bitcoin fails to surpass the $66,400 resistance level, it may trigger a downside correction. In such a scenario, the immediate support level to watch is near $65,150, with a major support level at $64,500. A break below $64,500 could lead to a further decline towards $63,500 or even the 50% Fib retracement level of the recent upward movement.
The price action of Bitcoin remains highly dynamic and unpredictable, with both bullish and bearish scenarios on the table. Traders and investors should closely monitor the key support and resistance levels mentioned above to gauge the future direction of BTC.