Bitcoin has been on the rise, but since the start of this week has been met with stiff resistance in the area around $65,000. At the time of writing (7:20 PM EST) Bitcoin is flirting with $65k currently at $64,949 after trading as high as $65,851 before giving back and retreating right to the area of resistance for the past few weeks.
On Tuesday, I sent out emails to my subscribers to pull profits on our long trade we entered on Friday Sep. 20th from $63,445 for a profit of around $1,400 per Bitcoin. I also mentioned that when we get a solid close above $65,000, we will enter another long trade. It appeared we were going to get that today however market forces brought the price back under the current level of resistance.
We outlined in our article published on the same day we exited our trade (Tuesday) why $65k was such a strong area of resistance and the details can be viewed in our article here.
Even with the price ceiling of $65k still in effect many signs point to higher prices ahead and there are various levels of technical support between current pricing and $60,000. These include all the major moving averages including the 200-day SMA which was just taken out this week.
The Ichimoku cloud has finally started to draw in an expanding green cloud as the conversion line travels further away from the base line beneath it. The Conversion line (blue line) also appears to have been tested as support today and held up to the challenge.
Where is the Beef?
Some traders may be asking, “were is parabolic rally so many have promised after the halving event 5 months ago?” The answer is a lot closer than you may realize, but it depends on bitcoin breaking out of its descending channel. Fortunately for the bulls a close at or above $68,000 would take us out of this channel. If or when this occurs, we can expect a test of the all-time highs which once broken should usher in a new era of BTC appreciation.
In conclusion, a break and close above $65,000 should give bulls a very strong chance of reaching the next level of resistance just above $68,000. Even better for BTC bulls is a move up to that level would mean a breakout of the descending channel that has enveloped price action for the past 6 months. This could easily spell the end for this bear market we have been in for the last half of the year.
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