Bitcoin Nears Critical $67742 Resistance

Share

FxNews—Bitcoin trades in an uptrend against the U.S. dollar, and as of this writing, the pair is testing the %61.8 Fibonacci retracement level at $67,240.

Bitcoin Technical Analysis Daily Chart

Bitcoin Technical Analysis Daily Chart

Bitcoin Technical Analysis Daily Chart

The BTC/USD pair crossed above EMA 50 on May 15, a level that neighbored the %50 Fibonacci. The growth in the Bitcoin price escalated the bullish momentum, which led to the technical tools presenting an increase in their description.

Stochastic (8.8.8)

The stochastic oscillator value is 79, approaching the overbought area but hasn’t stepped into the overbought zone. This development in the indicator suggests that the market is not yet saturated from buying pressure, and the uptrend has room for further growth.

Relative Strength Index (14)

The relative strength index (RSI) value is 58, and the line hovers above the median line at about 58.9. This development suggests the bullish trend will likely resume.

Awesome Oscillator

The awesome oscillator, which has green bars today, aligns with the RSI and Stochastic indicators. The AO histogram is above the signal line with a value of 3,098. This development in the awesome oscillator also suggests a bullish trend.

These expansions in the technical indicators suggest that the bullish wave that began at $56,534 is strong, and the Bitcoin price could expand further against the U.S. Dollar.

We zoom into the 4-hour chart to conduct a detailed analysis and find key levels and trading opportunities.

Bitcoin Nears Critical $67742 Resistance

Bitcoin Technical Analysis 4-Hour Chart

Bitcoin Technical Analysis 4-Hour Chart

Bitcoin clung to the $67,240 immediate resistance in today’s trading session. As depicted in the BTC/USD 4-hour chart above, the price of the digital gods is above EMA 50 and Ichimoku Cloud, signaling a robust bullish trend.

Concurrently, the stochastic oscillator is declining in the 4-hour chart. The RSI value is 62, approaching 50 after this momentum indicator was overbought from May 17 to May 19. These RSI and the Stochastic oscillator developments in the lower time frame warn us that the market acceleration is slowing down.

Interestingly, the awesome oscillator recorded red bars and divergence in its histogram. This could be interpreted as the uptrend might step into a consolidation phase.

These technical developments indicate that Bitcoin’s primary trend is bullish. Still, the price might enter a consolidation phase, leading to the U.S. dollar erasing some of its losses against the most popular cryptocurrency.

Bitcoin Price Forecast – Bullish Scenario

Bitcoin Price Forecast - Bullish Scenario

Bitcoin Price Forecast – Bullish Scenario

The immediate resistance is the $67,742 mark. Bulls must close and stabilize the price above this resistance for the uptrend to resume. If this scenario comes into play, Bitcoin’s price will likely visit the 78.6% Fibonacci retracement level at $70.138, a level that neighbors the upper line of the bullish flag.

The Bearish Scenario

If the bulls fail to surpass the $67,742 resistance, this could lead to bears breaking below immediate support at $65,840. In this case, %61.8 should be recorded as a new higher low, and Bitcoin’s value could dip to %50.0 Fibonacci at $65,181, followed by EMA 50 and the Ichimoku cloud around the lower line of the bullish flag at about $63,155.

  • 20 May 2024