Bitcoin Pushes Above $65K But What Does Technical Analysis Say?

As Bitcoin BTC/USD marked its comeback above the $65,000 mark, technical analysts debate the chances of a brief dip before a resumption of the uptrend.

What Happened: Pseudonymous analyst Emperor noted that Bitcoin has crossed the $65,000 mark and anticipates prices may stall temporarily due to the presence of the all-time high volume-weighted average price (VWAP), represented by a red line on the chart.

Bitcoin Price Update

1. We have breached the $65,000 level as expected. Equal highs on some exchanges, not on Binance. Expected pump. Expect price to stall here, it is natural given that is also where the ATH VWAP is (red line).

2. August High is the next marginally higher… pic.twitter.com/zN0JajiEkT

— Emperor👑 (@EmperorBTC) September 26, 2024

For the unfamiliar, the volume-weighted average price (VWAP) is a technical indicator that shows the average price of a security throughout a trading day, weighted by the volume of trades. It helps to decide the asset’s fair value and identify entry and exit points. 

He further predicted that the next marginally higher level, the August high, would be reached quickly. If a pullback occurs, he expects it to be from the August high and believes any dips will be shallow.

Also Read: Bitcoin Is 97% Sure To Close The Month Above $60K—But What Are The Chances It Even Hits $70K?

Emperor’s analysis outlined a potential pullback zone for any significant dips, likely in October, near the $60,000 mark. This coincides with daily trends and Fibonacci levels.

Emperor concludes with a word of caution to his followers, advising them to enjoy the pump but refrain from dunking on the bears. He believes it is their shorts and refusal to accept the upcoming uptrend that provides fuel for new all-time highs.

Another trader agreed with Emperor's opinion, saying, "Stalling is not equal to bearish once we have this kind of a structure break." He also added that he remained cautious for a while but current price trends remind him of October 2023 levels.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: 

• Bitcoin Shines As Hedge Against ‘Major Geopolitical Events,’ Says Research Firm

Image: Shutterstock