Bitcoin Price Approaches Key Resistance Level, Potential Upside Movement Expected

Bitcoin has initiated a recovery trend above the $69,200 mark. Currently, BTC is trading over $70,000 and may seek further upward movement if it surpasses the critical $71,650 resistance level.

Key Takeaways

Bitcoin initiated a recovery wave above $69,500 and $70,000.
The cryptocurrency is currently trading above $70,000 and the 100-hour simple moving average.
A bullish flag pattern has formed with resistance at $70,700 on the BTC/USD hourly chart.
If the price stays below $71,200 and $71,650, it may trigger another downturn.

Bitcoin Price Approaches Break Zone

Bitcoin Price Encounters Resistance Levels

Bitcoin's price has begun a recovery movement above the pivotal $68,800 level. The cryptocurrency advanced through the resistance levels at $69,200 and $69,500, showing strong bullish behavior. The bulls successfully drove the price beyond the 38.2% Fibonacci retracement level on the downward trend from the swing high of $75,997 to the low of $67,343, enabling it to inch above $71,200. However, selling pressure from bears emerged around the $71,650 mark.

Bitcoin’s current trading position is above $70,000 and the 100-hour simple moving average. If it maintains stability above $69,500, there is potential for a fresh increase. The immediate resistance is positioned near the $70,700 level, where a bullish flag pattern is forming on the hourly chart of the BTC/USD pair.

Bitcoin Price Source: BTCUSD on TradingView.com

The primary resistance level is located around $71,650, coinciding with the 50% Fibonacci retracement of the downtrend from $75,997 to $67,343. A closing price above this resistance could trigger further increases, possibly reaching the $72,500 mark. Continued upward movement may lead to testing the $73,200 resistance, with the potential for a further challenge at $73,500.

Is Another Decline Coming for BTC?

Should Bitcoin fall short of breaking through the $71,650 resistance region, there is a risk of experiencing a downturn. Immediate support is noted around the $70,000 mark, with a significant support level at $69,500. The following support area is now at the $69,000 level. Additional losses could push the price toward the $68,200 support in the near term, while the main support stands at $67,500. Dropping below this level may hinder any potential recovery efforts shortly.

Technical Indicators:

Hourly MACD: The MACD is currently losing momentum within the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now above the 50 level.
Major Support Levels: $69,500, followed by $69,000.
Major Resistance Levels: $70,700 and $71,650.