Bitcoin Bulls Try to Pave The Way To $66K

Bullish Bitcoin traders are making strides to reclaim the 200 day moving average, and a close above $66,000 could ignite a rally toward BTC's all time high.

Source: decrypt.co

Bitcoin traders are actively pushing to breach current resistance levels, aiming to reach a two month high above $66,000. This bullish sentiment reflects a growing confidence in the market, as traders seek to reclaim upward momentum after a period of consolidation. 

For this breakout to materialize, several factors must align. First, the market needs to see a significant uptick in spot trading volumes or an increase in futures open interest. The accumulation of leveraged long positions is particularly crucial, as this would help break down the substantial wall of sell orders clustered around the $65,000 mark. The trading chart shows that strong sell orders are firmly positioned at key levels of $66,000, $67,900, and $70,000.

From a technical standpoint, reclaiming the 200 day moving average at $64,000 as support is imperative. Achieving this would not only confirm a bullish trend but also indicate that Bitcoin is trading above channel resistance. Such progress would be a vital sign for the bulls, as it would create an opportunity to reverse the trend of lower highs that has characterized recent price action. Closing a weekly candle above $65,000 by September 29 would be a critical milestone, suggesting that momentum is shifting in favor of the bulls.

Should the bulls succeed in this endeavor, it could trigger a wave of liquidations among short positions in the $64,200 to $65,000 range. This liquidation could add upward pressure on the price, potentially propelling it towards the long term descending trendline resistance at $66,200. Breaking through this resistance would not only bolster bullish sentiment but could also pave the way for a more significant rally, perhaps even challenging previous all time highs.

In discussing the current intraday price action, TRDR.io founder DK shared various insightful charts and analysis, emphasizing the importance of these key resistance levels and the potential market implications. Traders are closely monitoring the situation, aware that a decisive move above $66,000 could set the stage for a substantial upward trajectory in the coming days. The atmosphere in the market is charged with anticipation as participants weigh their positions and strategize for the next potential breakout, recognizing that the path forward hinges on the interplay of these critical technical factors. 

Overall, the landscape appears ripe for volatility, and traders are prepared to react to any shifts that could redefine the current market dynamics. With each passing moment, the excitement builds, as everyone watches to see if the bulls can capitalize on this opportunity and propel Bitcoin toward new heights.

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