Bitcoin dipped under its bull market trendline on Monday, hitting horizontal support at $62,250 before bouncing back. The move came as the U.S. stock market rallied almost to a new all-time high, providing upside sentiment that helped the cryptocurrency recover. However, the bounce was short-lived as Bitcoin faced rejection at the 200 simple moving average (SMA).
Bitcoin tests $62,250 support
The price briefly slipped below the bull market support line that has held since early this year. The $62,250 level acted as a floor, and Bitcoin quickly moved back above the trendline. The daily chart shows the asset climbed back above the 50-day SMA, a positive short-term signal. But the recovery stalled at the 200 SMA, a key resistance level that has capped upside in recent weeks.
Rejection at the 200 SMA
The 200 SMA continues to be a tough barrier. Last week's candle closed just below the 200-week SMA, and if that level confirms as resistance, it could weigh on price action. The rejection on Monday suggests sellers are still active at higher levels, even as buyers defend the $62,250 support.
RSI and Stochastic flash warning signs
Technical indicators are sending mixed signals. The RSI indicator line has fallen out of the ascending wedge formation that was active since early June, signaling potential further downside. Meanwhile, the weekly Stochastic RSI indicator lines are in a bearish cross-down posture. If the weekly Stochastic RSI remains bearish at week's end, it could be the last tick for a downside collapse.
For now, Bitcoin is caught between support at $62,250 and resistance at the 200 SMA. The stock market's strength provided a temporary lift, but the technical picture remains fragile. Traders will be watching whether the weekly Stochastic RSI flips or stays bearish as the week closes.
This article is for informational purposes only and not financial advice.
