After consolidating under a key resistance for a week, Bitcoin broke up to a two-month high and lost steam. The price is facing down as it opens this week on a sell, currently looking for a solid support to bounce back.
Starting this month on a bearish note, Bitcoin later failed to dip below the previous month’s low as it found support at exactly $52,500. The primary crypto bounced back and quickly regained momentum, breaking through several resistance levels to test the $66,500 level last Friday.
That test came with a rejection and the price stayed above the $65,000 level that provided support throughout last weekend. Today, it initiated a drop and lost this key support level – which is now acting as resistance.
With the latest drops, Bitcoin’s bias may turn bearish this week. But if it manages to find a solid ground above the $62,500 level, which serves as crucial support in the last ten days, we may see a huge buyback capable of activating a major breakout of the mid-term descending channel.
Inversely, if this drop triggers another leg down, BTC must break below the current monthly low before confirming a bearish continuation.
So far, Bitcoin’s performance has been remarkable following over 20% returns in three weeks. But now that it is rounding up the month on a weak note, we should expect a pullback into the upcoming month before resuming bullish at full speed.
BTC’s Key Levels To Watch
Source: Tradingview
Failure to bounce off its mentioned ten-day support could result in a big drop to $60,625. Lower support levels to watch are $57k and $55k.
If BTC manages to retake the $65,065 resistance level along with the monthly high, it may encounter resistance at the $67,066 level before targeting July’s $70,080 high. $72,000 and $73,700 would be the next resistance levels to watch for further test.
Key Resistance Levels: $65,065, $67,066, $70,080
Key Support Levels: $60,625, $57,500, $55,000
Spot Price: $64,575
Trend: Bullish
Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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