Bitcoin wrestles with resistance, struggles to reclaim $65K
Bitcoin’s price is stuck in a battle to hold steady above the $65,000 mark. As of now, it’s at $65,064, a 0.54% increase in twenty-four hours. The price has been fluctuating between $64,463 and $65,071 for days.
This constant up-and-down action is happening within a descending channel, with support and resistance levels around $63,826 and $65,378. The Bollinger Bands have upper and lower limits at $65,944 and $63,826.
Bitcoin’s desperately trying to break through the middle of these bands. If it manages this, it might head towards the upper band, staging a proper bullish reversal. But the upper band is a tough resistance level that Bitcoin needs to get past to stay bullish.
The On-Balance Volume is currently at 23.633K, showing a slight drop in buying volume. This means that while there is some interest in buying Bitcoin, it’s not enough to push the price above $65,000.
The MACD line is at -163.99, the signal line at -298.34, and the histogram shows a positive divergence with a reading of 134.35. This also hints at a possible reversal in momentum, with bearish pressure maybe easing.
However, since the MACD lines are still negative, overall momentum remains bearish. Several factors are adding to Bitcoin’s current troubles. One big reason is the repayment to Mt. Gox creditors.
Exchanges Bitstamp and Kraken have started distributing Bitcoin and Bitcoin Cash to these creditors. This means 142,000 BTC and 143,000 BCH are hitting the market soon, and likely triggering a selling pressure.
The recent crash in the US stock market, which wiped out over $1.1 trillion in value, has also affected our crypto diva.
There’s a strong link between traditional markets and cryptocurrencies, so when stocks fall, Bitcoin often follows. The S&P 500 and NASDAQ had their worst performances in two years, with the S&P 500 dropping 2.3%. This worsened the bearish sentiment in the crypto market.
Another factor is the nearly $4 billion worth of Bitcoin options set to expire. This causes market instability as traders decide whether to sell their positions or roll them over. The launch of the Ethereum ETF has added pressure on ETH, impacting the overall market.
Increased market volatility has triggered a sharp drop in the US dollar. Macroeconomic factors, like unfavorable economic data, have also hurt market sentiment, pushing Bitcoin’s price down further.
