Bitcoin Technical Analysis: BTC Faces Critical Resistance Above $69.5K

On Oct. 21, 2024, bitcoin is trading at $68,322, supported by a market cap of $1.35 trillion. The cryptocurrency saw a 24-hour trading range between $68,145 and $69,431, with a trading volume reaching $28.79 billion. Technical indicators from multiple time frames present a mixed picture, highlighting crucial entry and exit points for traders.

Bitcoin

In the 1-hour chart, bitcoin recently peaked at $69,487 before encountering a downward correction marked by several red candles. While high volumes preceding the peak signaled strong buying interest, the subsequent correction phase witnessed lower volumes, suggesting that selling pressure remains moderate. A potential short-term reversal could occur if prices stabilize and upswings with higher lows start forming, while a fall below $68,000 with increasing volume might indicate further downside risk.

BTC/USD 1-hour chart.

The 4-hour chart showcases a more pronounced uptrend, with bitcoin reaching a high of $69,487 followed by a period of consolidation. A key support level is identified around $66,500, providing a strong entry point if the price approaches this level with decreasing selling volume. However, resistance remains near the $69,500 to $70,000 range, a point where prior attempts to breach the level have faced hurdles.

BTC/USD daily chart.

On the daily chart, BTC has demonstrated a consistent rise from $58,867 to its recent high of $69,487, indicating a robust bullish trend. A series of green candles reflects strong buyer confidence, but caution is warranted as the emergence of red candles and long upper wicks point to resistance at the $69,500 level. A solid entry could be found near the $65,000 to $66,000 support zone, particularly if marked by high-volume buying action.

Current oscillator readings present a mixed sentiment. The relative strength index (RSI) remains neutral at 67, while the Stochastic oscillator and commodity channel index (CCI) signal a sell, with readings of 93 and 110, respectively. In contrast, the moving average convergence divergence (MACD) level is showing bullish momentum at a level of 1,811, suggesting some buying pressure remains intact. Traders should consider these indicators when assessing market direction.

All key moving averages indicate bullish momentum. The 10-period and 20-period exponential moving averages (EMAs) stand at $66,928 and $65,345, respectively, while the 50-period EMA is at $63,294, all signaling a buy. The alignment of these averages indicates strong support levels, reinforcing the potential for upward momentum if broader market conditions remain favorable.

Bull Verdict:

The bullish outlook for bitcoin remains strong, supported by consistent buy signals from key moving averages and a steady uptrend visible in longer time frames. The current price stability above significant support levels, combined with bullish momentum indicators like the MACD, suggests the potential for continued gains, provided bitcoin successfully breaches the resistance zone near $69,500.

Bear Verdict:

Despite bitcoin’s recent uptrend, the emergence of red candles and overbought signals from oscillators such as the Stochastic and CCI hint at a potential correction. A failure to hold key support around $68,000, coupled with weakening volume trends, could lead to increased selling pressure and a downward shift towards the $65,000 range. Caution is advised for bullish traders until clear signals of trend reversal emerge.

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