Bitcoin’s price movement shows bullish solid momentum as it inches closer to key resistance levels that could trigger a significant breakout. Bitcoin (BTC) currently stands at approximately $68,250, just shy of critical resistance at $67,900. Analysts closely monitor the cryptocurrency’s weekly close, which could begin a new bullish phase if BTC successfully closes above this price level.
According to analyst Rekt Capital, Bitcoin faced resistance at the upper end of a descending channel in the past, marked by multiple failed attempts to break through (as highlighted by the red circles in the chart). However, this resistance zone, which previously hindered Bitcoin’s upward movement, has now become potential support, indicating a shift in market sentiment. The retest of this zone, shown by the transition from red (resistance) to green (support), is underway, and a successful close above the $67,900 level would confirm this.
A promising sign is that the price holds well above the previous resistance zone. A close above $66,300, marking the channel’s top in black, would be considered a bullish close. However, a close above $67,900, the top of the green box, would be a very bullish signal, suggesting that Bitcoin has not only broken past previous resistance but is now entering a new, upward trajectory.
The Importance of the Weekly Close
The upcoming weekly close is being hailed as a pivotal moment for Bitcoin. For the bullish scenario to unfold, the weekly close must hold above the critical level of $67,900, which marks the top of the previous resistance. With Bitcoin only about $400 away from that crucial price point, traders eagerly await confirmation that the retest has succeeded.
If the weekly close holds above $67,900, it would signal that the previous channel top has been successfully converted into support. This conversion would set the stage for further price appreciation, potentially leading Bitcoin to new highs in the coming weeks. On the other hand, a failure to close above this level could cause Bitcoin to continue to consolidate within the current range.
The signs of a bullish breakout are becoming more evident as Bitcoin retests key levels. The retest is a crucial step in confirming the sustainability of this upward move, and downside wicks are being interpreted as healthy market behavior in the meantime. Bulls will likely maintain control if the price holds above the channel top.
In conclusion, all eyes are on Bitcoin’s upcoming weekly close, which could catalyze a major bullish breakout. With Bitcoin only $400 away from the critical $67,900 resistance level, a successful close above this point could begin a new price discovery phase for the leading cryptocurrency.
Source: https://blockchainreporter.net/bitcoins-weekly-close-poised-for-a-bullish-breakout/