Bitcoin Bulls Breach More Resistance Levels as It Targets $62,378 High

Oct 07, 2021 at 09:20 // News
Coin Idol
BTC price has recovered, but the uptrend is encountering another resistance at the high of $56,000

Bitcoin (BTC) price has started to break through more resistance levels, reaching the high of $55,743. Buyers have overcome the previous resistance at $52,888 to reach the new price level. In the last price action, buyers were overwhelmed at the high of $52,888.

The market then fell back to a low of $40,000. Today, the BTC price has recovered, but the uptrend is encountering another resistance at the high of $56,000. Further upside is possible if the bulls break through key resistance. The current bullish momentum has invalidated the overbought condition of the cryptocurrency.

The strong trend has broken above resistance at $52,888. However, if the bulls keep the BTC price above $56,000, the market will rise above $62,000. The psychological price level of $60,000 could be a resistance if Bitcoin reaches new highs. However, Bitcoin is still trading in overbought territory, and if buyers cannot keep prices above the $56,000 high, Bitcoin will fall and continue a downward correction.

Bitcoin indicator reading

BTC price has risen to level 70 on the Relative Strength Index for period 14. The index has reached the recent high, but has declined again. Since October 1, the daily stochastic has been above the 80% range of the price indicator. This tells us that the market has reached the overbought area. This will attract sellers in the overbought region. BTC prices will continue to rise as long as the price bars are above the moving averages.


Technical indicators:  

Major Resistance Levels – $65,000 and $70,000

Major Support Levels – $50,000 and $45,000

What is the next direction for BTC/USD?

On the 4-hour chart, BTC price has broken out above the moving averages. Buyers are also pushing the cryptocurrency above two key resistance levels, as seen on the chart. Meanwhile, the September 24 uptrend has a candlestick body testing the 23.6% Fibonacci retracement level. The retracement suggests that the BTC price will rise to the 4,236 Fibonacci Extension level or $62,378.


Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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