- Bitcoin is approaching the $65K resistance as it remains above the $61.3K 21-week EMA for two weeks.
- Market indicators point to positive momentum, but traders should watch for possible consolidation soon.
Bitcoin [BTC] is approaching a crucial weekly close as it trades at $64,503, showing a price increase of 2.53% in the past 24 hours.
Crypto analyst Rekt Capital noted that BTC is about to close above the 21-week Exponential Moving Average (EMA) of $61,360 for the second week in a row, which could indicate continued bullish momentum. Staying above this level could confirm a stronger uptrend for Bitcoin.
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In addition to the 21-week EMA, BTC is also approaching a close well above a major downtrend line after retesting this level twice in the past two weeks.
Traders are waiting for Bitcoin to maintain its position above both key indicators, allowing bulls to push the price further towards the $65,000 resistance zone.
Major Support and Resistance Levels for Bitcoin
Support around $61,360, which corresponds to the 21-week EMA, is considered an essential level for Bitcoin. If Bitcoin closes above this support, it could indicate a continued rise, consolidating the bullish trend.
On the other hand, resistance around $65,000 is expected to be the next major barrier for Bitcoin.
This area has historically been a difficult level to break, but with growing bullish sentiment, a breakout above $65,000 could pave the way for higher price targets in the coming weeks.
Market indicators point to positive momentum
The BTC/USDT daily chart shows Bitcoin trading between the upper and lower Bollinger Bands, with the latest price action hitting the middle band. This is seen as a sign that the uptrend could continue, especially if the price breaks above the upper Bollinger Band in the coming days.
The Awesome Oscillator (AO) is above the zero line, indicating positive market momentum. However, the shrinking histogram bars indicate a possible slowdown in buying pressure.
Source: TradingView
This could mean that Bitcoin is entering a consolidation phase before making its next move. The Aroon indicator also reflects a strong uptrend, with the Aroon-Up line at 71.43%, indicating that buyers are still in control.
The MVRV ratio reflects the growing bullish sentiment
The market value to realized value (MVRV) ratio for Bitcoin currently stands at 2.75, indicating that Bitcoin is trading at a premium compared to its realized value. Historically, an MVRV ratio above 3 often indicates overvaluation and possible market corrections.
However, with the ratio still below this threshold, there is room for further price increases.
Bitcoin’s current MVRV level suggests that the market is still in a bullish phase, but traders should remain cautious as a rising MVRV could indicate a greater likelihood of market corrections.
The past 24 hours saw a 1.27% increase in this ratio, showing that market participants remain optimistic about future price gains.
Source: InTheBlok
Read Bitcoin’s [BTC] Price forecast 2024-25
At the time of writing, Bitcoin had a market capitalization of approximately $1.27 trillion, with a 24-hour trading volume of over $28 billion. This increase in activity supports the current bullish outlook, as higher trading volumes are often accompanied by significant price movements.
Additionally, on-chain data is from DefiLlama shows a Total Value Locked (TVL) of $1.084 billion and 609,844 active addresses in the last 24 hours, reflecting steady user activity and interest in the network.
