BTC

Crypto analysis: How BTC will interact in upcoming weeks?

September 28, 2024

Crypto technical analysis:

Some experts think that the current economic situation could help boost risky assets like Bitcoin. However, others believe that Bitcoin is still in a period of stability. Technically, it seems like buyers are in control and are eyeing the next important price level at around $70,000.

BTC chart analysis

Bitcoin's price broke out of its consolidation zone between $62,000 and $64,700 on Thursday, closing above the $65,000 mark. By Friday, Bitcoin was trading slightly higher at around $64,900, facing resistance at the daily level of $65,379. This breakout is significant for traders and investors watching the cryptocurrency market closely.

If Bitcoin manages to break and close above its resistance level of $65,379, it has the potential to rally further. If this happens, Bitcoin could see a 7% increase from this breakout point, aiming to retest its previous high of$70,079, which it last reached on July 29. This potential rally could attract more buyers and boost market confidence.

The Relative Strength Index (RSI) on Bitcoin's daily chart has declined slightly but remains near 65, which is above the neutral level. For Bitcoin to continue its upward trend, the RSI needs to rise above its current level. However, traders should be cautious if the RSI exceeds 70, as this could indicate that Bitcoin is overbought and may face a price correction.

On the flip side, if Bitcoin fails to maintain its position above the consolidation zone around $62,000, it could signal a bearish trend. A break and close below this level could lead to a further 7% decline, bringing Bitcoin's price down to retest its September 17 low of $57,610. This potential drop could cause concern among investors and prompt some to sell their holdings.