Bitcoin which has been falling for some time now, managed to break above its previous resistance level of $67,303.98 and has since been showing signs of a potential rally.
At the time of writing, the BTC price is up 0.04% and is currently trading at around $67,303.98. BTC price is showing bullish signs and is also forming a base above the resistance level of $64,554.45.
The price is trading above the downtrend line and the 100-day simple moving average (SMA) on both the 4-hour and daily charts, suggesting a bullish signal. This can be seen in the image below.
The Relative Strength Index (RSI) on a 4-hour time frame also suggests that BTC price is bullish as the RSI line approaches the overbought session above the 50% level. According to the RSI, the price could consolidate a bit before continuing its rise.
Additionally, the 1-D MACD also indicates bullish momentum as the MACD histograms are already trending above the zero line, while the MACD line and MACD signal line have crossed and are heading towards the MACD zero line . If the MACD line and MACD signal line successfully cross the MACD zero line, then the price is expected to continue rising.
Alligator 1 day: Finally, we can observe that the price of Bitcoin has managed to exceed the William Alligator indicator. The alligator’s jaw and lip crossed above the alligator’s teeth, suggesting the beginning of an upward movement.
What could happen if Bitcoin continues to soar?
There are two resistance levels: $67,267.79 and $71,337.80. If the price of Bitcoin continues to fall overvoltage upside with this momentum and breaks above the resistance level of $67,267.79, the price could move closer to the resistance level of $71,337.80. A breakout of this resistance level would cause prices to rise significantly, likely to a new high for the year.
What if the price drops?
If the price fails to break above the resistance levels mentioned above, Bitcoin will continue to decline. There are currently three main support levels for BTCi.e. $64,554.45, $60,137.39 and $56,540.64.
If the price manages to continue falling, it will move towards the support level of $64,554.45. And if this level fails to hold the price, it could go further to test the support levels of $60,137.39 and $56,540.64.
Featured image from iStock, chart from Tradingview.com
