Bitcoin Faces Resistance Above $62K After Record Weekly Close

Bitcoin has gained more than 40% this month on speculation the SEC will approve an exchange-traded fund.

Oct 18, 2021 at 11:10 a.m. UTC
Updated Oct 18, 2021 at 8:29 p.m. UTC

Bitcoin ended Sunday (UTC) well above $61,000, confirming its highest weekly close and putting the lifetime price record of $64,801 on the map.

So far, the follow-through has not been impressive. The cryptocurrency was trading near $61,300, having faced rejection around $62,600 early today.

Bitcoin's four-hour chart with relative strength index. (TradingView)

  • Since Friday, buyers have failed several times to establish a foothold above $62,000. That, coupled with the lower highs on the relative strength index (RSI), indicates scope for a temporary price pullback.
  • Failure to defend Sunday’s low of $58,943 may bring stronger selling pressure.
  • However, optimism stemming from the U.S. Securities and Exchange Commission’s tacit approval of a bitcoin futures-based exchange-traded fund is likely to keep the cryptocurrency well supported on price dips.

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Omkar Godbole is the senior reporter on CoinDesk's Markets team.