Bitcoin Price Struggles to Break Resistance
Bitcoin price is currently facing challenges in gaining momentum above the $71,500 resistance level. Despite trading above $70,500 and the 100 hourly Simple Moving Average, the price is unable to push past this crucial barrier.
Formation of Rising Channel
A short-term rising channel is taking shape with support at $70,750 on the hourly chart of the BTC/USD pair, as per data feed from Kraken. This formation suggests a potential breakout if the price manages to surpass the key resistance zone of $71,500.
- Bitcoin price secured a base above the $69,000 resistance level before heading higher towards the $70,000 resistance zone.
- Although the price breached the $71,000 mark, it encountered selling pressure near $71,500, resulting in a consolidation phase. The recent peak was around $71,306.
- Presently, the price hovers near the 23.6% Fib retracement level of the move from the $69,128 low to the $71,306 high, indicating a short-term consolidation pattern.
Potential Rally on the Horizon
Bitcoin is currently positioned above $70,500 and the 100 hourly Simple Moving Average, indicating a positive sentiment. The formation of a rising channel with support at $70,750 further suggests a bullish outlook.
Possible Scenario of Price Movement
If Bitcoin manages to break above the $71,500 resistance barrier, there is the potential for a significant upward movement. The price could target the $72,500 level or even reach the $73,500 zone in the near future.
Concerns About a Decline
Failure to surpass the $71,200 resistance level might trigger a downward trend for Bitcoin. Initial support levels lie at $70,750 and the channel trend line, followed by $70,200.
- The first major support sits at $70,200, along with the 50% Fib retracement level of the recent upward move.
- If the price drops below $70,000, it could spiral towards the $69,120 level, with further downside risks leading to the $68,500 support zone.
Technical Indicators
Key technical indicators like the MACD and RSI provide insights into Bitcoinโs price movement:
- Hourly MACD โ The MACD is currently showing signs of losing momentum in the bullish zone.
- Hourly RSI โ The RSI for BTC/USD is above the 50 level, indicating a positive trend.
Key Levels to Watch
Traders should keep an eye on the following levels for potential price movements:
- Major Support Levels โ $70,750, followed by $70,200
- Major Resistance Levels โ $71,200, $71,500, and $73,500
Hot Take: Stay Vigilant Amidst Price Volatility
As Bitcoinโs price continues to fluctuate within a narrow range, it is essential for traders to remain vigilant and monitor key resistance and support levels for potential breakout opportunities.
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