Bitcoin Attempts Fresh Increase, Why BTC Could Struggle Near $62K

Bitcoin price started a fresh increase above $60,000 against the US Dollar. BTC is rising and it could attempt an upside break above the $62,000 resistance.

• Bitcoin managed to pump above the $60,000 and $61,000 levels.
• The price is now trading above $61,000 and the 100 hourly simple moving average.
• There is a major bearish trend line forming with resistance near $61,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must settle above $62,000 to start a major increase in the near term.

Bitcoin Price Starts Fresh Increase

Bitcoin price found support near $58,140 and started a fresh increase. BTC was able to break the $60,000 and $60,500 resistance levels to move into a positive zone.

The price even settled above the $60,500 level and the 100 hourly simple moving average. There was also a break above the 50% Fib retracement level of the key decline from the $63,700 swing high to $58,140 low. It is now facing resistance near the $61,650 and $61,800 levels.

There is also a major bearish trend line forming with resistance near $61,650 on the hourly chart of the BTC/USD pair. Bitcoin is also facing barrier near the $62,000 level.

Source: BTCUSD on TradingView.com

It is near the 61.8% Fib retracement level of the key decline from the $63,700 swing high to $58,140 low. A clear break above the trend line resistance and then $62,000 may possibly call open the doors for a move towards the $63,000 level. The next major resistance sits near the $64,000 level.

Fresh Decline In BTC?

If bitcoin fails to clear the $62,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $61,000 level. The first major support is now forming near the $60,500 level.

A break below the $60,500 support may possibly put a lot of pressure on the bulls in the near term. The next key support is near the $60,000 level, below which there is a risk of a larger decline. In the stated case, the price might slide towards the $58,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $60,500, followed by $60,000.

Major Resistance Levels – $61,650, $62,000 and $63,200.

by Aayush Jindal on October 29, 2021 at 08:38AM