Required containers
- Bitcoin (BTC) trades around $66,300, extending gains after retracing the 50-day EMA.
- The leading cryptocurrency remains below the 100- and 200-day EMA, leaving major resistance levels.
- Technical indicators, including the RSI and MACD, are showing a strengthening trend.
Bitcoin (BTC) remained firm around $65,800 on Wednesday, extending this week’s rally as the cryptocurrency market continues to recover.
The world’s largest cryptocurrency strengthened its position for a while after closing above the 50-day Exponential Moving Average (EMA), a technical development that indicates that buyers are gradually regaining control.
However, Bitcoin still faces significant resistance from long-term trends that need to be cleared before a more powerful trend occurs.
Bitcoin also gets important technical support
Bitcoin’s recent move above the 50-day EMA at $65,150 indicates an important change in market structure after several weeks of corrective trading.
Although the breakout has strengthened the short-term momentum, BTC continues to trade below the 100-day EMA at $68,082 and the 200-day EMA at $73,982, which suggests that the recovery is not yet complete.
As long as Bitcoin stays above the 50-day EMA, buyers have a close opportunity. However, retrieving higher moving averages is necessary to ensure that interest rates continue to improve.
Technical indicators continue to help steer the market. The Relative Strength Index (RSI) has risen to 60, remaining well above the 50 level while remaining below the overbought level. This shows that buying energy strengthens without showing signs of fatigue.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, indicating that the bullish trend continues. Although the indicator did not show a definite explosion, it reinforces the opinion of consumers that they are gaining confidence.
Bulls look at the $68k resistance level
Bitcoin’s next major hurdle is at the 100-day EMA around $68,082. A clear break above this resistance would improve the medium-term outlook and change the focus of the 200-day EMA at $73,982.
If the bullish momentum continues beyond that level, BTC may look for resistance near $84,410.
On the downside, immediate support is provided by the 50-day EMA at $65,150. A major support area is around $64,004, where buyers may try to protect against the latest breakout.
However, a sustained move below $64,004 would weaken the current order and increase the risk of a major correction.
Meanwhile, Bitcoin’s recovery above its 50-day EMA, combined with a strengthening trend, suggests that the bulls are resuming. The next test will be whether buyers can overcome resistance near $68,082 to extend the current rally.
