Bitcoin is approaching a crucial weekly close as bulls aim to break a seven-month downtrend.
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin attempting to overcome a resistance level that has held firm since March’s all-time high. Bitcoin (BTC), currently trading around $67,686, has spent over six months consolidating within a downward-sloping channel, following its record high of $73,800.
Despite multiple attempts to push into new price discovery, BTC/USD has remained within this range. Now, traders are hopeful that this time may be different.
Analyzing the weekly chart, trader and analyst Rekt Capital noted that Bitcoin has repeatedly tested the upper edge of the channel, with the latest attempt coming this week. He explained, “Bitcoin has experienced a rejection from the top of the Downtrending Channel (red) just like in the past (blue circles). It’s essential Bitcoin Weekly Closes inside the red resistance to avoid a deeper rejection from here.”
The current channel top is around $68,000, and with buyers continuing to apply pressure, a close beyond this level is within reach, leaving bears with limited options.
Rekt Capital added, “Still early on in the week. Generally, we need to observe this Downtrending Channel resistance (red) for signs of weakening compared to previous rejections.”
On shorter timeframes, there is more reason for optimism as daily closes have already occurred outside the channel. Daan Crypto Trades, another trader and analyst, noted that “With the recent move, it has finally broken out of the channel it traded in for most of 2024.”
Daan’s accompanying chart indicated that BTC/USD has also surpassed its 200-day simple moving average (SMA) and exponential moving average (EMA) cloud, which had posed challenges since the summer. He concluded, “Short-Mid timeframe trend is also up.”
