Bitcoin’s recent price surge has brought renewed optimism to the market, with the leading cryptocurrency breaking through significant resistance levels. After crossing the $64,500 mark, Bitcoin gained over 5%, reaching a critical resistance level of $66,400. However, despite the bullish momentum, BTC is now facing hurdles that could determine the next phase of its rally.

The big question on every trader’s mind is: Will Bitcoin manage to break through the $66,400 resistance, or is another correction on the horizon?

Bitcoin’s Recent Rally: A Look at the Surge

Bitcoin’s price has been on an upward trajectory after forming a strong base above $62,500. This rally saw BTC clear several key resistance points, including the $63,500 and $65,000 levels, pushing the price firmly into bullish territory.

The momentum continued, and Bitcoin briefly touched $66,398 before stalling near the critical $66,400 resistance. While the cryptocurrency has demonstrated solid upward movement, the inability to break this resistance so far has led to a consolidation phase. BTC is now trading slightly below $66,000 as the market awaits its next move.

Key Resistance at $66,400: Can Bitcoin Break Through?

The $66,400 level is proving to be a major hurdle for Bitcoin. Technical analysis shows that a clear move above this resistance could open the doors for further gains, with the next target potentially being the $66,850 level.

According to data from Kraken, a short-term bullish trend line has formed with support at $65,400, suggesting that Bitcoin could continue to trade within this range unless a breakout occurs. If Bitcoin manages to close above $66,400, it could a fresh rally toward $67,500 or even $68,000 in the near term.

However, Bitcoin’s failure to decisively break through this resistance could result in a pullback, especially given the current consolidation around the $66,000 zone.

Support Levels to Watch: Where Could Bitcoin Fall?

If Bitcoin fails to maintain its upward momentum and break the $66,400 resistance, traders should be prepared for another possible decline. The first key support lies at $65,400, which is bolstered by the trend line on the hourly chart.

A stronger support zone is found at the $64,250 level, which corresponds to the 50% Fibonacci retracement of the recent upward move from $62,139 to $66,398. Should Bitcoin fall below this level, it could drop toward the $63,500 support zone.

Further losses might even push BTC down to the $62,500 level, a key support area that played a pivotal role in Bitcoin’s recent recovery.

What Could Drive Bitcoin’s Next Move?

The direction of Bitcoin’s next move largely depends on several factors, both technical and macroeconomic. Traders are closely watching the $66,400 resistance, as a break above it could signal a continuation of the rally. On the other hand, failure to surpass this key level could trigger another wave of selling pressure, leading to a retest of lower support levels.

Moreover, market sentiment is still in flux, with broader economic concerns, including inflation and central bank policies, influencing risk assets like Bitcoin. The cryptocurrency market often reacts to macroeconomic news, and any major developments could either fuel Bitcoin’s rally or dampen it.

Technical indicators are also mixed at the moment. While the bullish trend line at $65,400 provides short-term support, the consolidation around $66,000 suggests that traders are waiting for stronger signals before making their next move.

What’s Next for Bitcoin?

As Bitcoin consolidates below $66,400, the market is at a critical juncture. If BTC manages to break through this resistance, it could pave the way for further gains, with the next target being $67,500 or even $68,000. However, if the price fails to clear this level, a retracement to $65,400 or lower is likely.

In the coming days, Bitcoin traders will be watching closely for a breakout or breakdown from the current price levels. The $66,400 resistance remains a key factor in determining the short-term direction of Bitcoin, and how the market reacts to this level will provide crucial insight into whether BTC can maintain its rally.

Conclusion

Bitcoin’s recent price action has brought it to a pivotal point. The cryptocurrency has surged above $64,500 but now faces a critical resistance at $66,400. Breaking this level could lead to further gains, while a failure to do so may result in a correction. With the market in a consolidation phase, all eyes are on Bitcoin’s next move as traders assess whether the rally will continue or if another pullback is on the horizon.