Bitcoin climbed 3% over the weekend, but the rally hit a wall at a familiar level. The price was rejected from $65,600 — a resistance that has held for weeks — and the weekly candle once again failed to close above $66,000. That makes eight consecutive weeks without a close above that mark. On the brighter side, a lull in Middle East fighting pushed oil prices lower, and if that calm leads to negotiations, it could take pressure off U.S. stock markets and potentially give Bitcoin a tailwind.
Resistance at $65,600 holds
Bitcoin is trading above the descending channel on the daily chart, a technical sign that the short-term downtrend may be losing steam. But the rejection at $65,600 shows sellers are still active at that level. The price has been unable to break through decisively, and the weekly chart tells a similar story: no close above $66,000 for two months. That's a psychological barrier as much as a technical one.
Eight weeks and counting
The weekly candle has now failed to close above $66,000 for eight straight weeks. That's a long stretch of frustration for bulls. Still, Bitcoin remains above the 200-week simple moving average and the bull market trendline — two long-term supports that have historically marked the floor during corrections. The trend isn't broken, but it's being tested.
Macro relief from the Middle East
Oil prices fell over the weekend as fighting in the Middle East quieted down. If that lull turns into actual negotiations, it could ease inflation fears and give the Federal Reserve more room to be dovish. That would be a positive for risk assets across the board, including crypto. Bitcoin has been sensitive to macro headlines this year, and a calmer geopolitical backdrop would remove one headwind.
What to watch this week
The key question is whether Bitcoin can finally push through $65,600 and target a weekly close above $66,000. The macro picture is improving, but the price action is still stuck. Traders will be watching the daily close today to see if the rejection holds or if buyers can mount another attempt. If the Middle East situation continues to de-escalate, Bitcoin might get the boost it needs.
