According to the October 26 Bitcoin analysis; Bitcoin rallied yesterday after positive news from payments giant Mastercard and The Korean Teachers’ Credit Union. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin needs to clear $64,000 for the possibility of a rally:
- Bitcoin recouped its losses and managed to climb above the $62,500 resistance.
- The price is now trading above $62,000 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $63,200 on the hourly chart of the BTC/USD pair (data from Kraken).
- If there is a close above the $64,000 resistance zone, the pair could start a steady rise.
The $64,000 Level Is Important
Bitcoin experienced a good recovery wave above $62,500 after the low of $59,610 it saw in the past days. Bitcoin even rallied above the 50% Fib retracement level of the downward move from the $66,980 high to $59,610 high. The price is now trading above $62,000 and the 100 hourly simple moving average.
However, it met resistance near the $63,000 and $63,200 levels and there is also a major bearish trend line forming with resistance near $63,200 on the hourly chart of the BTC/USD pair. The main breakout resistance is currently forming near the $64,000 level. This is close to the 61.8% Fib retracement level of the downward move from the $66,980 high to $59,610 high.
A clear break above the trendline resistance followed by $64,000 could potentially open the doors for a move towards the $65,000 level. The next major resistance is sitting near the $66,500 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break past the $64,000 resistance zone, it could start a fresh downside correction. Immediate support on the downside is near the $62,200 level. The first major support is now forming near the $61,500 level and the 100 hourly SMA. A break below the $61,500 support could push the price towards the $60,000 support zone in the near term.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- MainSupport Levels – $62,200, then $61,500
- Major Resistance Levels – $63,000, $63,200, and $64,000
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