👉Bitcoin has formed a descending channel on the weekly time frame. The largest asset by market capitalization needs to close above the resistance level of $66,849, the upper boundary of the channel, to confirm a bullish breakout from the channel.
👉The midpoint at $60,000 marks a crucial support level for Bitcoin. The Moving Average Convergence Divergence (MACD) indicator shows consecutive smaller red bars below the neutral line, meaning that the underlying negative momentum in BTC is likely to weaken. Traders should look out for a crossover of the MACD line above the signal line as this confirms a trend reversal.
👉The relative strength index (RSI) is at 56, above neutral and well below the overbought zone at 70.
💥On the daily timeframe, BTC is 11.94% away from its all-time high. The asset faces resistance at two key levels at $70,011 and $66,849. Both of these levels have acted as major resistance for BTC for nearly six months now.
👉MACD shows potential positive momentum in BTC on the daily timeframe and RSI is at 63, above the neutral level of 50.
👉If Bitcoin fails to close above the October 12 low of $62,457, this could invalidate the bullish thesis for BTC. The asset could gather liquidity in the Fair Value Gap (FVG) between $61,321 and $62,457.
