Originally published on: September 13, 2024
Bitcoin has experienced a significant rebound in price over the past five days, climbing from a recent low of $52,500 to $64,389.02. However, despite this upward momentum, challenges lie ahead as the cryptocurrency struggles to break through the $65,000 range high. Let’s delve into the reasons behind this resistance and what it means for Bitcoin’s future price movements.
Bitcoin’s Weekly Trends and Resistance Levels
On the higher timeframe, Bitcoin continues to form weekly lower highs, reinforcing previous support levels as resistance. Futures liquidation-driven sell-offs have resulted in lower lows with deep wicks, indicating a downward trend. To reverse this trend, Bitcoin would need to close weekly candles above $65,000, providing a pathway for bulls to challenge the range high and descending trendline at $66,000.
Market Movements and Technical Analysis
Zooming into the day-to-day price action, momentum traders have capitalized on buying dips to the descending trendline and selling at the 61.8% Fibonacci retracement level. However, the pattern of lower weekly highs suggests that BTC’s rally may face resistance in the $62,000 to $63,000 range, as indicated by the Bollinger Bands, 200-day moving average, and Fibonacci levels.
Sustainable Demand and Market Dynamics
Despite the recent price surge, sustainable spot demand from buyers remains a concern. Forced buying due to liquidations has been the primary driver of Bitcoin’s upside movements, with momentum waning as resistance levels pose significant barriers. This lack of organic demand could hinder Bitcoin’s ability to break through key resistance levels and sustain its upward trajectory.
Invest with Caution
It’s essential to note that this analysis does not constitute investment advice. Every investment decision carries risk, and readers should conduct their own research before making any financial moves. Stay informed and monitor market trends closely to navigate the fluctuations in Bitcoin’s price with confidence.
