TA: Bitcoin Breaks Key Resistance, Why BTC Could Extend Rally

Bitcoin gained pace above the $63,000 resistance against the US Dollar. BTC is rising and it may soon clear the $65,000 resistance in the near term.

  • Bitcoin is showing positive signs above the $61,000 and $62,500 levels.
  • The price is now trading above $62,500 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $62,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend rally and it might even clear the $65,000 level in the near term.

Bitcoin Price Eyes More Upsides

Bitcoin price started a major increase above the $62,000 resistance zone. BTC broke the key $63,000 resistance zone and settled above the 100 hourly simple moving average.

It even spiked above the $63,500 resistance and traded to a new multi-week high at $64,448. It is currently correcting lower and trading below the $64,000 level. An immediate support is near the $63,700 level. It is near the 23.6% Fib retracement level of the upward move from the $61,320 swing low to $64,448 high.

There is also a key bullish trend line forming with support near $62,800 on the hourly chart of the BTC/USD pair. On the upside, an initial resistance is near the $64,000 level. The first key resistance is near the $64,250 level.

Source: BTCUSD on TradingView.com

A clear break above the $64,250 resistance could open the doors for more upsides. The next major resistance sits near the $65,000 level, above which the price might rise towards the $66,500 level. Any more gains could set the pace for a larger increase towards the $68,000 level.

Dips Limited In BTC?

If bitcoin fails to clear the $64,200 resistance zone, it could start a downside correction. An immediate support on the downside is near the $63,700 level.

The first major support is now forming near the $62,850 level. It is near the 50% Fib retracement level of the upward move from the $61,320 swing low to $64,448 high. The main support is near the trend line, below which the price might decline towards the $61,000 support and the 100 hourly SMA.

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 still above the 50 level.

Major Support Levels – $61,850, followed by $62,500.

Major Resistance Levels – $64,200, $65,500 and $66,500.

Publication date: 
10/20/2021 - 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.