Bitcoin climbed 3% over the weekend, pushing up against a critical resistance level near $66,000. Despite this recent uptick, the market shows signs of weakness, and the rally lacks the momentum needed for a sustained breakout above this barrier.
Since bouncing from a low just under $58,000, Bitcoin’s price has inched higher but without strong conviction. The brief surge beyond $66,000 failed to gain traction, suggesting sellers quickly stepped in. On Monday, Bitcoin appeared to test and confirm the underside of the trendline that fueled its climb, signaling potential downside risk and the possibility of another dip to lower support levels.
One silver lining for bulls is Bitcoin’s position above the descending channel. This could keep the price drifting sideways above this boundary until momentum shifts, possibly setting the stage for another breakout attempt at the $66,000 resistance.
The daily chart shows Bitcoin breaking above the descending channel again, but it's uncertain if it can maintain that level. Price action may continue moving sideways between the $66,000 resistance and the upper trendline of the bull market. The Stochastic RSI hints at a possible upward cross, while the RSI remains inside a rising wedge pattern a break below that wedge could trigger a deeper correction, but staying inside preserves hopes for a rally.
Another notable factor is the weekly candles. Eight consecutive weekly closes have stayed below the $66,000 mark, reflecting persistent resistance. Yet Bitcoin remains above both the 200-week simple moving average and the main bull market trendline. The price is currently squeezed between these technical levels and $66,000 resistance, suggesting a decisive move is inevitable but may take some time.
Meanwhile, geopolitical developments have added another layer of complexity. A recent lull in Middle East conflicts pushed oil prices down sharply. Should this calm lead to renewed negotiations, it might ease pressure on the U.S. stock market and indirectly support Bitcoin. This connection highlights how traditional market shifts can influence crypto dynamics.
Bitcoin was last seen hovering near these key levels as traders weigh the next move.
