Bitcoin has been trending lower since peaking on May 10 near its 200-day moving average (green line on the chart above). The inability to move above and stay above that key technical level gave sellers the upper hand and provided the first clue that the rally was running out of steam.
Selling pressure intensified when the price broke below the 100-day moving average (blue line on the chart above). That break attracted additional momentum sellers, helping to accelerate the decline. Over the next five trading days, Bitcoin fell sharply and reached new lows for the year near $59,000.
Since bottoming, buyers have stepped back into the market, helping to drive a recovery over the last several trading days. That rebound has now returned the price to a prior swing area between $64,200 and $65,000. What had previously acted as support is now serving as an important resistance zone.
For the last seven trading days, Bitcoin has largely been trapped between support near $59,000 and resistance near $65,000. The market is currently consolidating within that broad range as buyers and sellers battle for control.
Eventually, the stalemate will end with either a break above resistance or a move below support. Traders will be watching closely for increased momentum on the breakout, as a move beyond either boundary is likely to provide the next directional clue for the cryptocurrency.
