BTC Heading Towards $65,000 After Up 10% Weekly? (Bitcoin Price Analysis)

Bitcoin recently experienced a strong bullish reversal from a critical support zone, defined by the 0.5 and 0.618 Fibonacci levels.

BTC is now approaching the 100-day moving average at $61.6k, where it may find significant selling pressure, suggesting a potential near-term consolidation.

Technical Analysis

By Shayan

The daily chart

A closer examination of Bitcoin’s daily chart reveals that after a decline towards the key support zone between the Fibonacci levels of 0.5 ($56.3K) and 0.618 ($52.1K), the ‘asset encountered substantial buying pressure, resulting in strong investment. This bullish momentum led to a roughly 15% rally towards the 100-day moving average at $61.6k, a major resistance level.

The current price action suggests that buyers have re-entered the market with the aim of going higher. However, Bitcoin is now trading within a critical range, with resistance at $61.6k and support between the 0.5 and 0.618 Fibonacci levels, where a brief period of consolidation may occur.

The 4 hour chart

On the 4-hour chart, Bitcoin saw an apparent reversal at the $53,000 support, which aligns with the 0.618 Fibonacci level, starting a steady uptrend. The failure to make a new lower low within the $52,000-$54,000 range indicates strong buying interest, effectively halting the previous bearish momentum. Bitcoin is now approaching a key resistance area around $65,000, which has historically been a challenging level for the price.

If buyers push the price above this zone, the next target will be the $70,000 resistance. However, if the price is rejected at $65,000, a bearish pullback towards the psychological support of $52,000-$54,000 could follow.

Chain analysis

By Shayan

The MVRV (market value to realized value) ratio is a popular indicator for assessing overall market sentiment. It is calculated by dividing the market capitalization by the maximum realized. When the ratio falls below 1, it indicates that most investors are facing losses, a scenario often associated with the formation of bear market funds for extended periods.

The MVRV ratio has recently fallen below its 365-day moving average, a historically significant level that has often marked the beginning of market recoveries. While this could be seen as a potential opportunity for long-term investors, caution is essential.

A significant recovery is usually indicated when the MVRV ratio rises again above this key level. In previous market cycles, this move has often been a turning point, leading to renewed investor confidence. However, current conditions, characterized by heightened fear and uncertainty, suggest that any recovery may take longer to develop. Therefore, adopting a cautious and patient approach remains vital during this period.

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