Bitcoin tests key resistance, pullback still possible

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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• Price has been pushed up by Spot buying, whilst Open Interest has decreased and Funding Rates are up (so Shorts closing out).
• From a mechanics viewpoint, this is what you want to be seeing.

BTC mechanics:

Technical analysis

• We initially thought BTC might reject at the $63,400 level and pull back further. But, price has broken to the upside, great to see.
• Price has also broken out above the descending wedge, which we expected, but thought we might see that price pull back first.
• The $65k to $66k has previously acted as a resistance zone for price, so this is a key level for Bitcoin to overcome here.
• To the downside, we'd expect the $63,400 level to act as a new local support for price.
• The RSI has broken above the Moving Average and is now heading higher, but not yet close to being overbought.

• Next Support: $63,400
• Next Resistance: $66,000
• Direction: Neutral
• Upside Target: $66,000
• Downside Target: $63,400

Cryptonary's take

A really positive move here from Bitcoin, which is perhaps playing some catchup (to MicroStrategy, which has been ripping higher). Now it's possible that full risk-on attitude isn't ready to come back in, just weeks before what looks like a close US Presidential Election. However, chart-wise, BTC looks good, so we're positioned well.

In the short term, it's possible that BTC struggles here as we're at a horizontal resistance ($65k to $66k). Therefore, it's possible we will see a slight pullback to potentially $63,400 before we can test higher from there. Very hard to call in the immediate short-term here. A break above $66k would be seen as a huge sign of strength, and we would be at full risk of this.