Why Bitcoin Price Could Accelerate To $65K, Dips Likely To Be Limited

Bitcoin price is gaining momentum and it broke the $60,000 resistance against the US Dollar. BTC is showing positive signs and it could continue to rise towards $65,000.

• Bitcoin rallied above the $60,000 level and traded to a new all-time high near $61,800.
• The price is now trading nicely above $60,000 and the 100 simple moving average (4-hours).
• There is a key bullish trend line forming with support near $58,500 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair could correct lower, but dips are likely to be limited below $58,000 in the near term.

Bitcoin Price is Surging

This past week, bitcoin price started a steady increase above the $55,000 resistance against the US Dollar. The BTC/USD pair even broke the $58,000 level and settled above the 100 simple moving average (4-hours).

The upward move gained pace above the 76.4% Fib retracement level of the key downward move from the $58,281 swing high to $40,073 low. There was a strong increase above the $58,500 and $60,000 resistance levels.

It even spiked above the $61,000 level and traded to a new all-time high near $61,800. It seems like bitcoin price faced a strong selling interest near the $61,800. The 1.236 Fib extension level of the key downward move from the $58,281 swing high to $40,073 low.

Source: BTCUSD on TradingView.com

The price is currently correcting lower below the $61,000 level. On the downside, an initial support is near the $60,000 level. There is also a key bullish trend line forming with support near $58,500 on the 4-hours chart of the BTC/USD pair. Any more losses could open the doors for a move towards the $58,000 and $57,200 support levels.

Limited Downsides in BTC?

On the upside, the $61,500 and $61,800 resistance levels are initial hurdles for the bulls. A clear break above $61,800 could open the doors for a move towards the $62,500 level.

The next major resistance is near the $65,000 level. Any more gain could push the price towards the $68,000 and $68,500 resistance levels in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining bullish momentum in the bullish zone.

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

Major Support Level – $60,000

Major Resistance Level – $58,500