Bitcoin Processes Over 1 Billion Transactions: Why Is BTC Still Below $66,000?

Bitcoin is firm at press time but bulls have failed to close above the $65,000 and $66,000 resistance zone. Sentiment remains bullish

Written by: Dalmas Ngetich • Tuesday, May 7, 2024 • 1 min read

• Last updated: Tuesday, May 7, 2024

Bitcoin rose over the weekend, trading above an important resistance level in the daily chart. Even though there are signs of strength, there must be a conclusive close above the recent chop. Of note, prices must firmly close above the middle BB or the 20-day moving average. As such, yesterday’s bears must be reversed, volumes must be high, and the resulting bar must be ideally wide-ranging and green.

At press time, Bitcoin is down roughly 2% on the last day but stable in the previous trading week. For the uptrend to resume and bulls to build on recent higher highs, there must be a sharp surge in trading volume. As it is, participation is decent, at around $30 billion. However, it remains tapered and lower than average.

Bitcoin Daily Chart for May 7

The following Bitcoin news events will influence price action:

Since its launch, the Bitcoin network has processed over 1 billion transactions. The 1-billionth transaction was posted on May 5.
Despite waning momentum and shifting sentiment, the surge over the weekend lifted Bitcoin to a two-week high. Analysts are confident that the downside momentum and the retracement from all-time high could be ending.

Bitcoin Price Analysis

BTC/USD remains weak at press time.

Even though Bitcoin marched higher over the weekend, the rejection at the middle BB should be a concern.

Nonetheless, analysts are bullish, expecting further gains.

Going forward, a close above $66,000 and, preferably, $68,000 is necessary for this to happen.

The break should also have higher participation. If these conditions are met, BTC will quickly fly to $70,000 and even $73,800 in a buy trend continuation formation.

Conversely, if bears follow through and confirm yesterday’s losses, BTC risks retesting May lows at around $56,500.