Bitcoin has recently broken its downtrend and is eyeing the challenge of surpassing resistance at $64,000. If this current upward momentum persists and the breakthrough occurs, the next target for Bitcoin could be $67,000.
The risk of Bitcoin losing its bullish trend line seems to have diminished, at least for the time being. The possibility of a continuation of the rally from the recent low of $56,600 remains viable. However, the medium-term outlook remains uncertain, with the potential outcomes ranging from a return to previous highs, a prolonged period of sideways movement, or merely a temporary bounce before revisiting lower levels.
At the $63,000 level, Bitcoin has found new support, especially evident on the shorter 4-hourly time frame. A successful retest of the downward trend line indicates a favorable outlook for further upward movement, with $67,000 presenting a significant target for this upward push.
Yet, breaking through the $66,000 resistance may prove challenging. On the weekly time frame, Bitcoin appears to be holding firm at the $63,000 support level, reinforced by a substantial wick down to $56,800. Moreover, the resistance around $66,000 aligns with the weekly candle close during the peak of the 2021 bull market, suggesting formidable resistance.
However, concerns arise when examining the 2-monthly chart, which paints a less optimistic picture for Bitcoin’s future. The previous 2-month candle closed below the $61,000 resistance, accompanied by a towering wick above it, indicating significant selling pressure that pushed the price below resistance. This pattern resembles a gravestone doji, reminiscent of the resistance witnessed during the 2020/2021 bull market.
Despite these bearish signals, the ongoing short-term rally on the weekly time frame persists. It remains to be seen how far Bitcoin’s price can climb before the impact of the concerning candle pattern fully manifests in the current bull market.
