Will Bitcoin Reach $65,000 This Week?
As Bitcoin failed to break the $64,000 resistance, it continued to fall. The 20, 50 and 100 moving averages have fallen in the hourly chart. This suggests that a fusion zone may form around this area. Let's examine what has changed in the market and how it affects the movement of Bitcoin.
High resistance
As we all know, the $64,000 zone is a very good defensive position, because this was once the ATH of Bitcoin. The weekly chart provides proof of this. In 2021, it made double attempts to the largest crypto to claim this position. It took 3 years for Bitcoin to breach this zone once it fell from the bottom to reach $70,000, but it could not hold that position for long. The zone above $62,000 does not have a specific support level. But beyond this point there is much objection. That's what Bitcoin is facing right now.
This zone played as a consolidation area for 2 days and it looks like Bitcoin is planning to spend the next few days of September in the same zone. This will be the best gameplay ever. If Bitcoin falls below $62,000 again, more bull power will be needed.
Other applicants
The MACD indicator shows that after reaching this high, Bitcoin has always shown a significant increase in sellers. This is because many investors buy at highs and try to lock in some profit before moving on. Even some whales play the same game at this stage. With September clearly having a dull mood, the market could drop at any time. Although the Greed and Fear index remained neutral and registered at 54 this morning, the RSI is yet to rise. Bitcoin is currently trading at $63,094 and more than 80% of investors are now in the currency.
The long-short ratio shows that traders lack bullishness. There are more shorts than long. The simple reason for this is that the moving averages bear weight on the price and the RSI along with the MACD shows the bearishness.
What is expected?
Current activity indicates an upcoming consolidation zone. This week we see Bitcoin price moving between $62,000 and $64,000. There are high chances that we will see a sudden price rally at the beginning of the new month and traders should remain ready for this shift with risk management.
