Bitcoin is testing a major resistance zone between $62,000 and $64,000, but analysts warn the current move may be a relief rally rather than a confirmed bottom. Altcoin Sherpa identified the $64,000 area as key resistance due to the 200 EMA on the 4-hour chart sitting near $64,167, while Kaz noted Bitcoin rebounded after sweeping liquidity near $58,000. Both analysts suggest the rally could turn into a bull trap if BTC fails to break through the resistance cluster, with Kaz stating a rejection could lead to a drop toward the low $50,000s. The technical setup shows Bitcoin trading below multiple overhead levels at $61,866, $62,877, and $64,755, keeping the market in what Altcoin Sherpa described as a choppy structure rather than a clear breakout.
Altcoin Sherpa Identifies $64K Resistance Zone on 4-Hour Chart
Altcoin Sherpa said Bitcoin is trading below several overhead levels on the 4-hour chart, with resistance marked near $61,866, $62,877, and $64,755. The 200 EMA on the 4-hour chart sits near $64,167, adding weight to the broader $64,000 zone.
The analyst said Bitcoin could see a pullback from one of these resistance levels, though the exact rejection point remains unclear. Altcoin Sherpa identified the $64,000 area as the main level to watch because of the 200 EMA and the nearby resistance cluster.
The shorter-term moving averages are turning up, showing some improvement in momentum. However, BTC is still trading under heavier higher-timeframe resistance levels, which keeps the market in what Altcoin Sherpa called a choppy structure rather than a clear breakout.
Altcoin Sherpa's chart suggests Bitcoin may continue moving sideways inside a volatile range. The analyst noted that a clean move above the nearby resistance stack would improve the setup, while rejection from one of these levels would support the pullback scenario.
Kaz Warns Relief Rally Could Form Bull Trap Before Drop to Low $50Ks
Kaz said Bitcoin may be in the middle of a relief rally, but the move could still be setting up a larger bull trap before another leg lower begins. The analyst's chart shows BTC rebounding after sweeping liquidity near the $58,000 area, a level Kaz had previously marked as an important downside target.
Price is now moving into higher resistance zones, with Kaz marking the first target area around the low $62,000 range and an extended retest zone closer to the mid-$63,000 to $64,000 area. Kaz said this push higher does not confirm that a bottom is in, instead viewing the move as a relief rally after a weak monthly close.
The chart outlines two possible rejection areas: the first sits in the "HVN + First Target" zone, while the second is an "Extended Retest" area higher up. Kaz said if BTC fails in either region, he expects price to reverse and head toward the low $50,000s.
Kaz stated such a move could become one of the bigger bull traps of the cycle because many traders may start calling for a bottom during the rebound. In his view, a drop from current levels would help clear overleveraged positions before a more meaningful recovery can begin.
Kaz said he expects July to stay choppy and noted the month could still close green even if BTC first drops lower, since the monthly open is near the current broader range. He added that August could turn more bearish and potentially mark the bottom of the bear market.
FAQ
What resistance levels did Altcoin Sherpa identify for Bitcoin?
Altcoin Sherpa identified resistance levels near $61,866, $62,877, and $64,755 on the 4-hour chart. The 200 EMA on the 4-hour chart sits near $64,167, making the broader $64,000 zone the main area to watch according to the analyst.
Why does Kaz consider the current Bitcoin rally a potential bull trap?
Kaz said the current move is a relief rally after Bitcoin swept liquidity near $58,000, but does not confirm a bottom is in. The analyst stated the rally could trap traders if Bitcoin rejects from the marked resistance zones around low $62,000s or the extended retest area at mid-$63,000 to $64,000, with a subsequent drop toward the low $50,000s clearing overleveraged positions.
What did Kaz say about Bitcoin's outlook for July and August?
Kaz said he expects July to stay choppy and noted the month could still close green even if BTC drops lower first, since the monthly open is near the current broader range. He added that August could turn more bearish and potentially mark the bottom of the bear market.
