Bitcoin (BTC) bounce in play - how high can it go?

Bitcoin (BTC) bounce in play - how high can it go?

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Bitcoin has broken the downtrend and is looking to break resistance at $64,000. Should this current bounce continue and the break takes place, $67,000 could be the next port of call for $BTC. 

The danger of $BTC losing its bull market trend line appears to have faded. At least for now. A continuation of the rally from the local low of $56,600 is still in play, and it just remains to be seen over the medium term, whether this is a rally back to the highs, a longer sideways accumulation period, or just a bounce before going back to make a lower low.

$63,000 is new support

Source: Coingecko/TradingView

On the short time frame of the 4-hourly, the support at $63,000 looks to be holding firm, and a retest of the downward trend line bodes well for continuation to the upside. The resistance at $67,000 is a decent target for this push up.

$66,000 resistance may be difficult to break

Source: Coingecko/TradingView

On the weekly time frame, the $BTC price can be seen to be holding that support at the $63,000 level, with the long wick down to touch $56,800 making that support even stronger. The resistance at around 66,000 is also based on the weekly candle close for the top of the 2021 bull market, so it will be very difficult to break again.

Incredibly bearish candle prints on 2-month time frame

Source: TradingView

However, it’s on the 2-monthly chart where the future for the $BTC price does not look good. The last 2-month candle closed under the $61,000 resistance, and what’s more, it left a towering wick above it, which bears testament to the massive selling that forced the price back under the resistance. 

Looking across to the 2020/2021 bull market, it can be seen that the very same resistance was in effect then. Printing a candle for the last 2-month period that looks similar to a gravestone doji, does not bode well going forward.

Nevertheless, the shorter term rally in the weekly time frame is continuing and it will be interesting to see how far the price can advance before/if this awful looking candle has its full effect on this bull market.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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