Key Takeaways:
Bitcoin price jumped after testing the 50-week simple moving average (blue).
BTC to USD seems to be trading inside a bullish flag with resistance at $68,500 on the weekly chart.
The current weekly candle suggests a strong bullish move from the $50,000 support zone.
New Delhi(Coinchapter.com): Bitcoin price trimmed most of its losses and climbed above $60,000. It could continue to rise toward the $65,000 and $68,000 resistance levels.
Bitcoin Price Bounces Sharply From $50,000
In the past few days, Bitcoins saw nasty swing moves from the $70,000 resistance. The bulls failed to push the price above $70,000, resulting in a sharp decline. There was a 20% drop and the price even dived below the $55,000 support zone.
It sparked heavy losses in Ethereum, DOGE, SOL, and XRP. However, the bulls defended the key support at $50,000 and the 50-week simple moving average (blue).
Bitcoin price weekly chart | Source: BTC/USD on TradingView.com
The weekly chart of BTC suggests that the price bounced back sharp after it tested the 50-week simple moving average (blue). It trimmed most of its losses and climbed above the 50% Fib retracement level of the downward move from the $70,162 swing high to the $49,130 low.
The price is now trading above the $60,000 level and showing a few positive signs. There is also a bullish flag forming with resistance at $68,500 on the weekly chart.
On the upside, the price is facing resistance near the $62,200 level. It is close to the 61.8% Fib retracement level of the downward move from the $70,162 swing high to the $49,130 low. The first major resistance is near the $65,000 level.
The main resistance is now forming near the channel and $68,000. A close above the $68,500 resistance could initiate a steady increase. In the stated case, the bulls could aim for a move above the $70,000 resistance. The next major hurdle sits at $72,000, above which the price could aim for a new all-time high or even $75,000.
Another Drop In BTC?
Conversely, Bitcoin price might fail to continue higher and start another decline. Immediate support on the downside is near the $60,000 level. The first major support is near the $58,000.
The next major support sits at the channel trend line at $53,500. A weekly close below the channel support could spark sharp losses. The main support sits near the $50,000 level. Any more losses might BTC toward the $40,000 level.
Overall, Bitcoin is showing positive signs above $58,000. However, the bulls face an uphill task near the $65,000 and $68,500 resistance levels in the coming days.
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