Bitcoin Consolidates Above $62,000 Support amidst Bullish Expectation

Bitcoin Consolidates Above $62,000 Support amidst Bullish Expectation

November 4, 2021

The price of Bitcoin (BTC) has declined over the past three days as the cryptocurrency hit a low of $62,406. The current decline is due to the fact that buyers were unable to recapture the $64,000 price level.

If buyers have managed to overcome this resistance level, the BTC price will rise and retest the next resistance at $67,000. If these levels are broken, a rally above the high at $70,000 is expected. 

Nonetheless, the BTC price is holding above support at $62,200 after the recent decline. In other words, bitcoin is above the 21-day moving average. The market will rise again if these levels hold. Conversely, Bitcoin will fall to the low of $58,700 if sellers break this current support. In the meantime, Bitcoin is trading marginally above the $62,000 support.

Bitcoin indicator reading

BTC price is at level 57 of the Relative Strength Index of period 14. It is in the bullish trend zone and above the midline 50. It has room for a rally to the upside. The 21-day moving average line has held as Bitcoin continues its uptrend. The altcoin is above the 50% area of the daily stochastic. This suggests that the market is in a bullish momentum, but the stochastic bands are tilted horizontally.

Technical indicators:  

Major Resistance Levels – $65,000 and $70,000

Major Support Levels – $60,000 and $55,000

What is the next direction for BTC?

On the 4-hour chart, bitcoin is in a trading range. It is trading in a limited range between $59,800 and $64,000. Bitcoin will resume its trend if these levels are broken. Currently, bitcoin is in the middle of the price range. There is a long candlestick tail pointing to support at $60,000. The candlestick suggests that there is strong buying pressure at the current support.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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