Bitcoin's resilience above $65,000 is attracting renewed investor attention, not only for its own prospects but also as a gauge of risk appetite across financial markets. After reclaiming several key technical levels, the cryptocurrency has begun to establish a modest uptrend, reflecting improved investor sentiment.
While Bitcoin is far from a foolproof leading indicator, its ability to stabilize and gradually move higher in the current environment offers a cautiously optimistic signal for equities and other risk assets. As the second half of the year unfolds, continued strength in Bitcoin could help support the case for a broader improvement in market confidence.
The technical picture is becoming increasingly constructive. Here's a look at the daily and weekly charts and the key levels investors should watch.
The daily chart is beginning to show encouraging signs of a potential trend reversal. A bullish RSI divergence developed in June and July, with RSI forming a higher low even as Bitcoin posted a lower price low, suggesting downside momentum may be fading.
There is still work to be done. The 200-day simple moving average continues to slope lower, reflecting the longer-term downtrend, and Bitcoin suffered a sharp correction after a bearish evening star, doji, and bearish engulfing pattern emerged on heavy volume during the first half of May. Even so, several recent technical developments are constructive.
A potential triple bottom appears to be forming near the round $60,000 level, beginning with a bullish piercing line on February 6. Bitcoin is also approaching a bullish inverse head-and-shoulders breakout pivot near $67,000. A decisive move above that level would reclaim both the 50-day simple moving average and the 21-day exponential moving average, strengthening the bullish case. I believe Bitcoin could then advance toward $77,000 in the near term, representing 17% upside from current levels. Remain bullish above $62,500.
Bitcoin was trading around $66,500 Tuesday.
The weekly Bitcoin chart reinforces the improving technical picture. A bullish RSI divergence developed during the first and second quarters of 2026, suggesting downside momentum has been fading even as prices remained under pressure. That is an encouraging development following the sharp decline from the $125,000 area last summer and into the fall, a period marked by repeated bearish candlestick patterns including spinning tops, dojis, bearish evening stars, and bearish engulfing formations.
Despite that prolonged correction, buyers have consistently defended the round $60,000 level. A bullish hammer formed during the first week of February directly off the rising 200-week SMA, while a 17% decline in the first week of June was immediately followed by a tight-ranged bullish harami, signaling that sellers failed to generate meaningful follow-through.
More recently, last week's doji candle points to fading downside momentum and potential trend exhaustion. With Bitcoin now back above its 200-week SMA, the longer-term technical outlook is becoming increasingly constructive.
Doug Busch is the senior technical analyst at Barron's Investor Circle . His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.
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(END) Dow Jones Newswires
July 21, 2026 14:18 ET (18:18 GMT)
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