- BTCUSD bounces above 65,000 as dollar weakens
- Bullish hopes emerging, but indicators remain in negative territory
Bitcoin (BTCUSD) is attempting a modest rebound from an overtwoweek low near 62,490, following three consecutive days of selling pressure that had pushed the price toward a symmetrical triangle breakout to the downside. The recovery comes alongside a techdriven bounce in US equities and a weaker dollar, with price action now retesting the previously broken lower boundary of its consolidation zone near 65,400.
That said, broader signals remain cautious, with the momentum indicators ticking higher but from negative territory – the MACD has crossed above its red signal line while still below zero, and the RSI is lifting from just above oversold conditions.
The price action is currently probing the potential formation of a floor, which could signal upside if confirmed. However, failure to hold recent support could reignite bearish momentum. Should downside pressures persist, Bitcoin may retest the 62,490 floor, and a break below that would expose the fifteenmonth low near the psychological 60,000 threshold touched early this month. In the absence of dipbuyers, losing this level could accelerate selling and deepen the correction.
Conversely, renewed buying interest at current levels may help shift the shortterm momentum. A breakout above the 20day simple moving average (SMA) near 67,839, followed by a break above the 23.6% Fibonacci retracement of the January 15 -February 2 downswing at 68,931, could open the way toward the 38.2% Fibonacci at 74,471, and later the 50% retracement near 78,949, which also aligns with the 50day SMA.
In summary, while Bitcoin appears to be stabilizing, underlying metrics – including the fact that the world’s largest crypto asset is on track for its sixth consecutive weekly decline – suggest that prolonged weakness may continue.