Bitcoin surges to $65,000 yet faces critical resistance zone

In the wake of Fed Chairman Jerome Powell’s confirmation of a rate cut in September, bitcoin experienced a significant surge over the weekend, climbing to $65,000. The crypto market has been closely watching these developments, which have significantly impacted bitcoin’s price action.

What happened to bitcoin over weekend?

• Weekend surge: Bitcoin prices hit $65,000 in weekend trading, surpassing the critical 200-day moving average of $63,400. This movement has brought bitcoin close to $63,800 in early-week trading.
• Analyst insights: Market analysts indicate that maintaining levels above the 200-day average could propel bitcoin to a target of $66,000. However, they caution that the $65,000-$66,000 range represents a significant resistance zone.

How did Powell’s Jackson Hole speech impact bitcoin?

• Jackson Hole: Following the Jackson Hole Symposium, bitcoin’s rise has been attributed to Powell’s positive outlook, which has fueled buying activity in the market. Prior to this, bitcoin had been trading below $60,000 until midweek but saw a sharp increase as it broke past this level.
• Current status: As of Aug. 26, 2024, bitcoin is trading at around $63,800, with minor profit-taking observed after the weekend’s peak. The bullish momentum remains strong, supported by Powell’s favorable comments.

What is the resistance level?

• Key moving averages: On Friday, bitcoin broke through both the 50-day and 200-day moving averages, set at $61,900 and $63,400, respectively. This breakout is seen as a critical signal, suggesting potential further gains toward $66,000 if bitcoin can hold above these levels.
• Resistance levels: Analysts emphasize the importance of the $65,000 to $66,000 range, noting that it is a crucial resistance zone. If bitcoin fails to break through this band, it may face challenges in maintaining its upward trajectory.

What happened?

• Black Monday and Trump Factor: Earlier this month, bitcoin faced a sharp decline to $49,500 during the “Black Monday” shock, exacerbated by negative sentiment from recent U.S. election polls showing crypto-friendly candidate Donald Trump trailing. Despite this, bitcoin has rebounded to test new highs, but the $65,000 to $66,000 resistance zone remains a significant hurdle.