Bitcoin’s (BTC) price made a fresh all-time high above $66,000 on Wednesday and could continue higher as bullish momentum improves, price-chart indicators suggest.
A successful breakout would require a daily close above $65,000, which would yield upside targets toward $74,000 and $86,000.
The price of the world’s largest cryptocurrency by market capitalization has fully recovered from a near 50% correction earlier this year, which stabilized around the $30,000 support level. Since then, buyers responded to oversold conditions and continued to accumulate long positions, anticipating the stock’s value will rise over time.
The next level of resistance is seen around $74,000, which could briefly stall the current rally. However, buyers will likely remain active above the $60,000-$65,000 support range given positive momentum signals on the weekly chart.
If support is held, BTC could see further upside toward $86,000, which is based on a measured move from the Oct. 1 breakout above the 200-day moving average.
The relative strength index (RSI) on the daily chart is the most overbought since February (current reading around 78), which preceded a brief price pullback. However, at that point, BTC continued to rally about 10% before hitting the April all-time high of $64,899, after which upside momentum slowed.
BTC will need to see continued buying pressure and a daily RSI reading above 50 to 60 to keep the current rally intact.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.