Bitcoin Initiates Strong Recovery, Surges Above $65,000; Traders Anticipate Technical Breakout and Option Strategies
Bitcoin is displaying signs of resurgence as it surpasses the $63,500 resistance zone. With a gain of over 5%, BTC is poised for an upward breakthrough.
Bitcoin Price Surges
In our previous analysis using the daily chart, we discussed how Bitcoin price remained resilient above the $57,000 and $60,000 support levels. Despite numerous attempts by bears to push BTC below the $57,000 zone, they were unsuccessful. The last low point was recorded at $57,072 before the price embarked on a recovery.
Over the past few sessions, the price has gained bullish momentum, overcoming several obstacles near the $63,500 resistance zone. It has surpassed the 50% Fibonacci retracement level of the downward movement from the $72,762 swing high to the $57,072 low.
Bitcoin price is currently trading above the 50-day simple moving average (blue) and is still adhering to a bullish flag pattern, with resistance at $68,000 on the daily chart.
Immediate resistance on the upside is situated at the $66,750 zone, which corresponds to the 61.8% Fibonacci retracement level of the downward movement from the $72,762 swing high to the $57,072 low. The primary resistance is still positioned near the bullish flag trend line at $68,000.
If BTC price manages to break the $66,750 resistance and settles above the $68,000 resistance, it could trigger a significant upward movement. The subsequent key resistance lies at $69,000, and surpassing it could lead to further acceleration in price towards the $75,000 region. A daily close above the $69,000 resistance zone could pave the way for a move towards $75,000.
Potential Rejection in BTC?
Conversely, Bitcoin price could encounter difficulties near $66,750 or $68,000, resulting in another decline. Immediate support now rests near the 50-day simple moving average (blue) at $65,000.
The primary support is situated near the $63,500 zone, with the subsequent support forming around the $62,200 zone. A breach below this level could test the key support at $60,000. The primary uptrend support remains within the $56,000-$57,000 zone.
Failure by the bulls to defend the $57,000 support could trigger a more substantial decline, potentially towards the $46,850 support level.
Overall, Bitcoin’s rise is bolstering sentiment in the crypto market. However, BTC/USD still needs to overcome the resistance levels at $66,750 and $68,000 to initiate a fresh uptrend.