TA: Bitcoin Consolidates Gain: What Could Trigger Fresh Rally

Bitcoin is showing positive signs above the $61,200 support against the US Dollar. BTC could start a fresh rally if it clears the $62,200 resistance zone.

  • Bitcoin is trading in a positive zone above the $60,000 and $61,200 levels.
  • The price is now trading above $61,200 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $61,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh rally and it might rise towards the $63,500 level in the near term.

Bitcoin Price Remains Supported

Bitcoin price remained strong above the $60,000 zone and traded in a positive zone. BTC jumped above the $62,000 level before starting a downside correction.

A high was formed near the $62,885 before there was a minor decline. The price declined below the $62,000 and $61,200 levels. However, the price remained supported near the $59,200 level and the 100 hourly simple moving average.

Recently, the price climbed higher and climbed above $61,200. However, the price is struggling above the $62,200 level. A high was formed near $62,672 before there was another decline. It traded as low as $59,900 and recently recovered above $61,000.

Bitcoin surpassed the 50% Fib retracement level of the downside correction from the $62,672 swing high to $59,900 low. There is also a major bullish trend line forming with support near $61,000 on the hourly chart of the BTC/USD pair.

The pair is now testing the 76.4% Fib retracement level of the downside correction from the $62,672 swing high to $59,900 low. On the upside, an initial resistance is near the $62,000 level. The first key resistance is near the $62,200 level.

Source: BTCUSD on TradingView.com

A clear break above the $62,200 resistance could open the doors for more upsides. The next major resistance sits near the $63,500 level, above which the price might rise towards the $65,000 level.

Dips Supported In BTC?

If bitcoin fails to clear the $62,200 resistance zone, it could start a downside correction. An immediate support on the downside is near the $61,200 level.

The first major support is now forming near the $61,000 level, the trend line, and the 100 hourly SMA. A downside break below the $61,000 level could push the price towards $60,000.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $61,200, followed by $61,000.

Major Resistance Levels – $62,200, $62,850 and $63,500.

Publication date: 
10/19/2021 - 03:08
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.