As anticipated, Bitcoin closed last week’s trading well above the $66k level and remained calm following a slight drop. It is charging back at last week’s high. A rejection there could trigger a short pullback.
So far, this month has seen quite imbpressive as Bitcoin increased nicely after experiencing a huge crackdown, which led to a strong bearish close in April.
But following the recent change in the market sentiment, the trend is now in favour of the bulls. However, it is too early to start considering a shift as it is yet to break out of its two-month bearish structure.
Of course, it has managed to close well above the critical $66,000 resistance (now support) level during last week’s trading; but it may lose grip if it fails to initiate a buy above this support level.
Meanwhile, the recent increase is still considered as a retracement of the existing bearish structure – the lower low and lower high formation – initiated from $73,777 in March. This structure still validates the existing swing low, which is now suspended at $56,552.
The major obstacle for the bulls lies at $70,000, which coincides with the orange descending trendline, serving as an important resistance line for almost two months. Breaking through it should confirm another rally for Bitcoin.
Bitcoin’s Key Levels To Watch
As Bitcoin keeps bouncing up, it may test $68,000 today before breaking through the $69,567 resistance level to tap $71,700. The $73,777 level is the next resistance to watch for a massive breakout.
There’s support at $65,500 in case of a pullback. A drop below it could plunge the price to the $63,450 and $60,200 support levels. Lower levels to watch for drops are $58,000 and $56,552, where it picked up this month.
Key Resistance Levels: $68,000, $69,567, $71,700
Key Support Levels: $65,500, $63,450, $60,200
- Spot Price: $67,277
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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