The BTC/USD pair is hovering near $65,000 resistance level and the traders are looking forward to whether the price will break this level or bounce back. In the analyst’s view, Bitcoin might break through to $65k easily, however, it is not clear, which direction the market will take afterwards. The price at the time of writing was $63,458.37, reflecting a drop of 1.26% in 24 hours.
#Bitcoin $65K waiting room ⏳
— Daan Crypto Trades (@DaanCrypto) September 25, 2024
Even if BTC ends up sweeping 65K and rejecting, which wouldn't be great, it would still make sense to at least sweep the level for liquidity purposes.
The longer we trade below it though, the more likely I think it is we hold it if it breaks. pic.twitter.com/5vhj2L0DXJ
Price Structure and Key Moving Averages
In the chart, there is a clear indication of a market structure break within the $65,054.60 level. This is important since the price of Bitcoin has been trading below this level for quite some time now. If it goes beyond this level, it could be a good indication of a new uptrend.
Backing the analysis, the daily 200 MA figure is displayed at $63,874.30—this is a key indicator used by many traders to define long-term trends. The price recently broke above this level, signifying a bullish signal. But if the price is unable to remain higher than the moving average, then it could be a signal of a reversal.
The 200-day exponential moving average (200 EMA) is also at around $59,595.17. This is another level that traders should look at. Should Bitcoin prices pull back, this could be a level of support. The market has been rather volatile over the past few weeks, with BTC prices ranging between $57,000 and $64,000.
Altcoins Outperform Bitcoin Amid Bullish Divergence SignalsLiquidity and Market Sentiment
The focus is on whether Bitcoin will sweep the $65K level, even if it leads to a temporary rejection. Liquidity plays a significant role here. A sweep could help the market gather enough momentum for an eventual breakout. If Bitcoin trades above $65K for an extended period, it would strengthen bullish sentiment. However, the longer Bitcoin remains under this resistance, the harder it may become for bulls to push through.
Market participants also point to a possible rejection at this level if Bitcoin fails to sustain its upward movement. While a rejection wouldn’t be ideal for short-term traders, it wouldn’t negate the long-term bullish outlook for Bitcoin. Traders often expect some form of correction when significant resistance levels like $65K are tested. Nonetheless, breaking past $65K would mark a crucial step towards higher price targets.
