Bitcoin which has been trending lower for some time, managed to break above the previous resistance level of $67,303.98 and has since shown signs of a potential upside.

At the time of writing, BTC has increased by 0.04% and is currently trading at approximately $67,303.98. BTC price is showing signs of bullishness and is also forming a base above the $64,554.45 resistance level.

The price is holding above both the bearish trend line and the 100-day uncomplicated moving average (SMA) on both the 4-hour chart and the daily chart, suggesting a bullish signal. You can see this in the image below.

The relative strength index (RSI) on the 4-hour time frame also suggests that the BTC price is bullish as the RSI line is trending close to an overbought session above the 50% level. According to the RSI, the price may consolidate slightly before continuing to rise.

Moreover, the 1-D MACD also indicates bullish momentum as the MACD histograms are already trending above the zero line, while the MACD line and the MACD signal line have crossed and are heading towards the MACD zero line. If both the MACD line and the MACD signal line successfully cross the MACD zero line, then the price is expected to rise further.

1-Day Alligator: Finally, it can be observed that the Bitcoin price has successfully crossed the William Alligator indicator. Both the alligator’s jaw and lip crossed over the alligator’s teeth, suggesting the beginning of an upward movement.

What could happen if Bitcoin continues to rise?

There are two resistance levels at $67,267.79 and $71,337.80. If Bitcoin price continues growth up with this momentum and breaks the $67,267.79 resistance level, the price may move further towards the $71,337.80 resistance level. A break of this resistance level would cause prices to rise significantly, likely to set a recent high this year.

What happens if the price drops?

If the price does not break above the resistance levels mentioned above, Bitcoin will continue to fall. There are currently three main support levels for BTC which are $64,554.45, $60,137.39 and $56,540.64.

If the price manages to continue its downward trend, it will move towards the support level of $64,554.45. And if this level fails to hold the price, it could move even further to test both the $60,137.39 and $56,540.64 support levels.

Featured image from iStock, chart from Tradingview.com