- Bitcoin price breaks month-old resistance to rush towards July’s all-time high.
- Successful trading above key SMAs, bullish MACD signals, and absence of overbought RSI favor BTC buyers.
- Resistance line from March grabs attention past ATH; convergence of 50-day SMA, multi-month support challenges sellers.
- Short-term rally toward a new record top looks imminent, but further gains may face slow acceptance.
Bitcoin (BTC) price gains more than 2.0% to hit the highest level in a month on Monday, around the $121,600 level by the press time.
The BTC bulls cheer an upside break of a descending resistance line from mid-July, now immediate support, to approach the all-time high (ATH) marked last month.
The breakout also justifies a week’s high of the trading volume, currently around $75.75 billion, and the record market capitalization of $2.43 trillion, per the Santiment data, to keep buyers hopeful of witnessing a fresh record high.
The 14-day Relative Strength Index (RSI) is still far from the overbought territory, and the bullish signals from the Moving Average Convergence Divergence (MACD) indicator further support the upside momentum.
Bitcoin Price: Daily Chart Suggests Further Upside
The Bitcoin price’s recent breakout of a trend line resistance from July, combined with the upbeat RSI conditions and bullish MACD signals, propels the price towards the all-time high of around $123,250.
Beyond that, an ascending resistance line from early March, close to $130K by the press time, and the RSI’s proximity to the overbought threshold at 66.00 (close to the 70.00 limit), may challenge the BTC bulls.
If Bitcoin price ignores the impending overbought RSI and crosses the $130K resistance, the $140K and $150K psychological magnets will be in the spotlight.
Alternatively, BTC pullback remains elusive beyond the resistance-turned-support line from July, around $119K at the latest.
Even if the quote breaks the $119K support, a confluence of the 50-day Simple Moving Average (SMA) and an upward-sloping trend line from April, close to $114,180 by the press time, will be the key to watch for Bitcoin sellers.
Bitcoin Price: Four-Hour Chart Spots Multiple Upside Hurdles
Unlike the daily chart, the four-hour timeframe for Bitcoin (BTC) reveals several upside hurdles, primarily due to the Fibonacci Extension (FE) levels derived from BTC’s June–August price movements.
These resistance levels are further reinforced by an overbought Relative Strength Index (RSI) on the four-hour chart, posing a challenge to further gains, even as a potential fresh all-time high continues to develop.
That said, the current ATH of $123,236 gains immediate attention of Bitcoin buyers, a break of which will highlight the 50% and 61.8% FE levels, close to $125,400 and $128,800 in that order, before shifting focus to the daily chart levels.
On the downside, a descending trend line from July restricts immediate BTC pullback around $119K before the 23.6% FE level of around $118K.
In a case where the BTC bears remain dominant past $118K, a convergence of the 200-bar SMA and a week-long ascending trend line, close to $116,900 and August’s bottom of $111,987 can test the sellers before the deeper levels discussed on the daily chart.
Conclusion
Bitcoin price appears well-set to refresh its all-time high, indicating short-term upside potential.
However, a slew of resistance levels and concerning RSI conditions could challenge the further upside momentum, prompting buyers to remain cautious.
