Bitcoin rose 3% over the weekend in a modest rally, but key resistance may have limited further short-term upside. The question for traders now is whether Bitcoin is nearing another breakdown or whether bulls can still attempt a renewed move higher. For short-term market structure, repeated tests of the same resistance area matter because a sustained move above it would show buyers absorbing supply, while another rejection would keep the recent sideways-to-lower pattern intact.

Rejection from $65,600 resistance remains in focus

Source: TradingView

A central factor in assessing whether the $BTC price is rising or falling is the broader condition of the crypto market, which continues to appear weak overall. Bitcoin has climbed notably from its bear market low just below $58K, but the advance has not shown strong momentum. Instead, the price has moved gradually higher, and even when it broke above the top of the channel and the key $66K resistance, there was little follow-through that would have provided significant upside escape velocity.

As of Monday, the $BTC price appears to be testing and potentially confirming the underside of the trendline that had guided the rally from the recent bottom. If that interpretation proves correct, a pullback could follow, with the possibility of another lower low.

The main factor in favour of bulls is that the price remains above the descending channel. Bitcoin could continue to drift lower while staying above that channel until momentum changes, giving bulls another opportunity to challenge the key resistance level.

Sideways price action continues between major support and resistance

Source: TradingView

The daily chart shows a second break above the descending channel. The next question is whether the $BTC price can hold above it. Even if it fails to do so, Bitcoin may continue to trade sideways between the major $66K resistance area and the top of the bull market trendline.

On this time frame, the Stochastic RSI indicator lines may be close to crossing back upward. In the RSI shown at the bottom of the chart, the indicator line has remained within the boundaries of a rising wedge pattern. A downside break from this wedge would likely indicate a more extended corrective phase, while continued movement inside the pattern leaves open the possibility of a breakout and rally. Momentum indicators such as RSI and Stochastic RSI are typically used as supporting signals rather than standalone confirmation, so traders will likely continue to watch whether price action itself can validate any shift in momentum.

Bitcoin records eighth straight weekly close below $66K

Source: TradingView

The most notable development on the weekly time frame is that the weekly candle again failed to close above the $66K horizontal resistance. This marks eight consecutive weekly candle closes below that level. Weekly closes are closely watched because they filter out some of the noise from intraday moves and can help define whether a resistance level is being meaningfully reclaimed or merely tested.

At the same time, $BTC has remained above the 200-week SMA and the bull market trendline. As the price is compressed into the narrowing space between those support areas and the $66K horizontal resistance, one side of the structure will eventually have to give way, although this process could take longer to play out.

In the Middle East, a lull in fighting has contributed to a sharp fall in oil prices. If that lull turns into a return to negotiations, it could provide some relief for the U.S. stock market, which in turn could translate into a healthier Bitcoin price. Bitcoin often trades alongside other risk assets during macro-driven periods, so shifts in oil prices, equities, and geopolitical risk remain relevant background factors even when the immediate chart focus is technical resistance and support.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.