BTC Price Fights Resistance at $63.6K as Bitcoin Achieves Key ,Milestone

BTC Price Analysis: Bitcoin Drops to $67K, Will It Test $66K Support Soon?

Bitcoin's price displays strength as it trades in a third straight bullish session after posting more than 5.77% gains over the last three days.

At the time of writing, BTC is trading at around $63,660, up 4.73% over the last 24 hours, slightly outperforming the market. The second largest cryptocurrency by market capitalization, Ether (ETH), is also recovering. It has rallied 3.76% over the last 24 hours to trade at $3,486.

The global crypto market capitalization has also rallied 4% to rest at $2.33 trillion.

The bullishness in Bitcoin is asserted by an 80% increase in the daily trading volume which currently stands at $21.5 billion, according to data from CoinMarketCap. This suggests that the demand-side activity is very high.

Bitcoin’s performance today follows the achievement of a key milestone in one of the on-chain metrics. Data from market intelligence firm Glassnode reveals a consistent increase in the number of wallet addresses holding at least one Bitcoin.

The chart below confirms this increment, revealing that the number of Bitcoin wallet addresses holding at least one BTC had crossed 1 million, as of June 30.

Number of Bitcoin addresses with a balance greater than 1 BTC. Source: Glassnode
Number of Bitcoin addresses with a balance greater than 1 BTC. Source: Glassnode

The increase in the number of addresses holding BTC suggests that investors are confident in the future increase in Bitcoin price, fueling a bullish thesis for the largest cryptocurrency.

Bitcoin price breaks out of a falling wedge

The Bitcoin price is breaking above the falling wedge on July 1 and is fighting resistance from the 20-day exponential moving average (EMA) at $63,666.

A daily candlestick close above the 20-day EMA would see BTC rise  5% to retest its next resistance at $65,000, embraced by the 50-day EMA.

The relative strength index (RSI) and the Awesome Oscillator in the daily chart are below their neutral levels of 50 and zero. If bulls are indeed returning, then both momentum indicators must maintain their positions above their respective neutral levels.

Bitcoin’s upward trajectory will gain momentum once the RSI crosses the midline into the positive region.

If this happens, BTC could extend an additional rally to revisit its previous all-time high at $69,000 and later the stubborn resistance at $72,000. Overcoming this barrier could see BTC rise toward the new all-time high of $73,835 by the end of the week. This would represent a 17% uptick from the current price.

BTC/USD daily chart. Source: TradingView
BTC/USD daily chart. Source: TradingView

However, if BTC closes below the $62,000 psychological level and forms a lower low in the daily time frame, it could indicate that bearish sentiment persists. Such a development may trigger a 10.6% decline in Bitcoin’s price, to revisit its low of $56,500 from May 1.

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