- Bitcoin is closing in on $65K resistance as it holds above the $61.3K 21-week EMA for two weeks.
- Market indicators signal positive momentum, but traders should watch for potential consolidation soon.
Bitcoin [BTC] is approaching a crucial weekly close as it trades at $64,503, showing a 2.53% price increase in the last 24 hours.
Crypto analyst Rekt Capital noted that BTC is on the verge of closing above the 21-week Exponential Moving Average (EMA) of $61,360 for the second consecutive week, which could signal continued bullish momentum. Holding above this level could confirm a stronger uptrend for Bitcoin.
Source: X
In addition to the 21-week EMA, BTC is also nearing a close well above a major downtrend line after retesting this level twice in the past two weeks.
Traders are waiting for Bitcoin to sustain its position above both these key indicators, which may allow bulls to push the price further towards the $65,000 resistance zone.
Key support and resistance levels for Bitcoin
Support around the $61,360 mark, which corresponds with the 21-week EMA, is considered a vital level for Bitcoin. If Bitcoin closes above this support, it could indicate a sustained move higher, consolidating its bullish trend.
On the other hand, resistance around $65,000 is expected to be the next key barrier for Bitcoin.
This area has historically been a tough 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 suggest positive momentum
The daily chart of BTC/USDT shows Bitcoin trading between the upper and lower Bollinger Bands, with the latest price action touching 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 next few days.
The Awesome Oscillator (AO) is above the zero line, indicating positive market momentum. However, the shrinking histogram bars suggest a possible slowdown in the buying pressure.
Source: TradingView
This could mean that Bitcoin might enter a consolidation phase before making its next move. The Aroon indicator also reflects a strong uptrend, with the Aroon-Up line at 71.43%, signaling that buyers are still in control.
MVRV ratio reflects growing bullish sentiment
The Market Value to Realized Value (MVRV) ratio for Bitcoin is currently at 2.75, indicating that Bitcoin is trading at a premium compared to its realized value. Historically, when the MVRV ratio exceeds 3, it has often pointed to overvaluation and potential corrections in the market.
However, with the ratio still below this threshold, there is room for further price appreciation.
Bitcoin’s current MVRV level suggests that the market remains in a bullish phase, but traders should remain cautious as an increasing MVRV could indicate a higher likelihood of market corrections.
The last 24 hours saw a 1.27% increase in this ratio, showing that market participants remain optimistic about future price gains.
Source: IntoTheBlock
Read Bitcoin’s [BTC] Price Prediction 2024-25
As of press time, Bitcoin had a market capitalization of approximately $1.27 trillion, with a 24-hour trading volume of over $28 billion. This rise in activity supports the current bullish outlook, as higher trading volumes often align with significant price movements.
Furthermore, on-chain data from DefiLlama shows a Total Value Locked (TVL) of $1.084 billion and 609,844 active addresses over the past 24 hours, reflecting steady user activity and interest in the network.
