Bitcoin Holds Key Support and Aims for Bullish Momentum
Bitcoin recently retested the $67,500 support level before embarking on a fresh uptrend. The price of BTC is currently trading above $70,000 and the 100 hourly Simple Moving Average, indicating a positive sentiment in the market. An important bullish signal was the break above a key bearish trend line with resistance at $69,600 on the hourly chart of the BTC/USD pair, sourced from Kraken data feed. If the price manages to surpass the $71,400 resistance zone, it could potentially gain bullish momentum in the near term.
The Path to Recovery
Following a recent decline below the $70,000 support level, Bitcoin dipped below $68,500 after a larger-than-expected increase in the US Consumer Price Index (CPI). However, strong buying pressure emerged near the $67,500 support, forming a low at that level. Subsequently, the price began to climb, breaking through resistance at $69,200 and $69,500. Additionally, Bitcoin cleared the 50% Fibonacci retracement level of the downward move from the high of $72,597 to the low of $67,500, marking a positive turnaround.
- Bitcoin found support near $67,500 before initiating an upward move.
- The price broke above key resistance levels at $69,200 and $69,500.
- A bullish trend line was breached, signaling a potential rally.
Potential Breakout Points
Presently, Bitcoin is trading above $70,000 and the 100 hourly Simple Moving Average, affirming the uptrend. Immediate resistance lies near the $71,400 level or the 76.4% Fibonacci retracement level from the recent swing high to low. Following this, significant resistance levels include $72,500 and $72,800. If Bitcoin successfully surpasses the $72,800 resistance zone, it could pave the way for further upward movement, possibly targeting $73,200 and beyond.
Upward Trajectory in Sight
In the event of a sustained uptrend, Bitcoin could aim for a challenging breakout towards $73,200, with subsequent hurdles at $73,500 and potentially the $75,000 resistance zone. These levels represent crucial milestones for the cryptocurrency’s upward trajectory and signal a bullish sentiment among investors and traders.
Possible Bearish Scenario for Bitcoin
However, should Bitcoin struggle to breach the $71,400 resistance barrier, it might witness another downward correction. Immediate support is expected around the $70,000 level and the 100 hourly SMA. For a more significant pullback, Bitcoin would have to break below the $69,200 support, potentially targeting the $68,500 level and the critical $67,500 support zone in the short term.
- If Bitcoin fails to break above $71,400, it could face further downside pressure.
- Initial support levels include $70,000 and the 100 hourly SMA.
- A breach below $69,200 could trigger a deeper correction towards $68,500.
Technical Indicators and Key Levels to Watch
Technical analysis provides additional insights into Bitcoin’s price movements:
- Hourly MACD – Shows increasing bullish momentum in the current trend.
- Hourly RSI – Indicates strength above the 50 level for BTC/USD.
- Major Support Levels – $70,000, followed by $69,200.
- Major Resistance Levels – $71,400, $72,500, and $73,500.
Hot Take: Bitcoin Treads Cautiously Towards Key Resistance Levels
As Bitcoin navigates through critical resistance levels and support zones, the cryptocurrency market remains poised for potential breakout or breakdown scenarios. Traders and investors closely monitor price action around $71,400 and $72,800, anticipating crucial turning points in Bitcoin’s journey. Stay vigilant as the market dynamics unfold, offering opportunities for swift gains or corrections based on prevailing market sentiment and technical indicators.
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