- Bitcoin fluctuates between $57,000 and $62,000, defined by Fibonacci retracement levels.
- Resistance at $62,066 aligns with trendline and 100-day EMA; support at $57,115.
- RSI and AO below neutral suggest potential bearish trend; closing above $62,066 signals bullish trend.
Bitcoin's price has been holding steady, fluctuating between $57,000 and $62,000. This range is defined by the Fibonacci retracement levels of 38.2% and 61.8%, drawn from the high on July 29 to the low on August 5.
As of writing, Bitcoin trades slightly higher by 0.6%, reaching $59,428. This consolidation phase is crucial as it sets the stage for potential future movements.
Resistance and Support Levels
If Bitcoin manages to rise back to the 61.8% Fibonacci retracement level at $62,066, it may encounter resistance. This level aligns with a previously breached trendline and the 100-day Exponential Moving Average (EMA) around $62,217, making it a significant resistance zone.
Should Bitcoin fail to surpass this level, it could drop to $57,115. A further decline of 19% could see Bitcoin revisiting the $49,917 daily support level.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are both trading below their neutral levels of 50 and zero, respectively. This suggests a potential bearish trend on the horizon.
The RSI measures the speed and change of price movements, while the AO provides insights into market momentum. Both indicators currently point to a cautious outlook for Bitcoin.
Potential Upside
However, if Bitcoin's price can close above $62,066, it could signal a bullish trend. A rise towards the August 2 high of $65,596 would be likely, setting a higher high on the daily chart.
This could lead to a further 6% price increase, testing the weekly resistance at $69,648. Achieving this level would indicate strong upward momentum and could attract more buyers into the market.
The post Bitcoin Consolidation: Key Fibonacci Levels and Resistance Analysis for Potential Upside appeared first on Crypto News Land.