Today, Bitcoin (BTC) experienced a modest drop of 0.56%, with its price hovering around $66,857.31. The cryptocurrency saw a slight rise to $66,992 earlier, indicating a volatile trading day influenced by external market pressures and investor sentiment. The trading volume has surged by 44.80%, reaching $22.77 billion, signaling increased market activity as traders react to the latest economic cues and price movements.
Venezuela’s Ministry of Electric Power has announced plans to disconnect cryptocurrency mining operations from the national grid due to their substantial electricity use, which is exacerbating the strain on the country’s power supply. This move to halt crypto mining follows a recent enforcement action where 2,000 mining devices were seized in Maracay during an anti-corruption drive.
#Oficial Prohibida la minería de Criptomonedas en toda Venezuela.
— Asonacrip (Asociación Nacional de Criptomonedas) (@AsonacripVe) May 18, 2024
Bitcoin’s technical landscape offers mixed signals. On the positive side, BTC recently closed above the 50-day Simple Moving Average (SMA), suggesting a potential shift in momentum. This move could encourage bullish investors, especially if BTC maintains its stance above this level. However, resistance near the $67,200 mark has proven challenging, with today’s peak showing a pullback from this level, indicating that it remains a significant barrier to further gains.
Looking ahead, the crucial levels for Bitcoin will be the overhead resistance at $67,500 and subsequent higher resistance at $73,794. A decisive breakout above these points could set the stage for a rally towards $80,000, representing a potential 20% increase from current levels.
Conversely, if the price falls below the $64,000 support, it might test the lower support at $60,365, where buying interest could re-emerge, preventing further declines. The Relative Strength Index (RSI) is currently at 55.89, suggesting that there is still room for price movement before reaching overbought conditions.
BTC/USD Consolidates Within Tight Range: 4-Hour Technical Outlook
The 4-hour chart for Bitcoin (BTC) shows a consolidation phase, with the price hovering around the $66,852 mark, illustrating a period of relative stability. Recently, BTC has been trading just under the upper Bollinger Band, signaling a testing phase near the resistance level of approximately $66,883. This level is critical as it aligns closely with the 20-SMA of the Bollinger Bands, indicating a potential zone for either a breakout or a pullback.
Technically, the MACD indicator presents a narrowing gap between the MACD line and the signal line, suggesting a decrease in the bullish momentum that previously drove prices higher. This is corroborated by the Aroon indicator, where the Aroon Up (blue line) at 71.43% is high but has started to decline, indicating that the bullish trend strength might be waning. The Aroon Down (orange line) at 5.14% shows that the bearish momentum is currently weak, but any increase could accelerate a downward movement.
Bitcoin’s position near the upper Bollinger Band and the recent technical signals suggest a pivotal moment. If BTC can maintain support above the middle band at around $66,417, it might continue to challenge upper resistance levels. However, traders should watch for any increase in bearish indicators, which could push BTC towards the lower Bollinger Band around $64,600.
