Analysts Watch Bitcoin’s Next Move as It Approaches Key Resistance

Bitcoin’s price spiked after falling to an all-time low near $67,500. After a recent sell off from $72,500 level Bitcoin’s movement has drawn market analysts eyes who are on the lookout for the upward momentum. If the recovery continues the cryptocurrency is attempting to correct losses, aiming shortly for the significant $70,000 resistance zone.

At one point, Bitcoin slid below $70,500 after it had dropped sharply from above $72,500 earlier this week. The cryptocurrency broke through critical support levels, including $71,500 and $70,000, putting it on track for further falls in the fall. BTC tested $67,483 in downward thrust, forming a temporary bottom only to start its current upward attempt. 

Bitcoin Breaks Through $68,500 Resistance, Eyes Short-Term Rally

The pair briefly pushed back over the bearish trend line and tested a resistance level at $68,300 on the hourly chart, according to Kraken data. That movement could be a positive signal, analysts say, since a position above the $70,000 mark would likely increase Bitcoin’s outlook and further gains.

In this recovery, Bitcoin was able to push past the $68,500 resistance level, confirming it can continue to rally in the short term. On the technical front, the price rose above the 23.6 percent Fibonacci retracement level of the slide seen from the $73,576 swing high to the $67,483 low, a welcome technical sign that could tip the market toward a lasting rebound.

Despite this, Bitcoin still has a lot to prove on the upside. The price is now near to key resistance levels of $69,500 and $70,000, which are key points to break or crack above. The $69,500 resistance is a big obstacle as it sits in the 50% Fibonacci retracement level of our recent high of $73,576. Though any move above $70,000 isn’t guaranteed, if BTC can clear it, this could be the start of a much bigger move to new highs, with the next significant resistance at $71,200.

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Bitcoin Faces Risks of Decline If $70,000 Resistance Fails

A break out of the $71,200 resistance might push Bitcoin to retest the $72,500 level, according to analysts, which could be the start of a wider ascending trend. If this rally has legs, Bitcoin’s price could even make it as high as $73,200, a price it hasn’t traded below since May. However, this glass is only half full, assuming that BTC manages to break above the $70,000 threshold, a probability that is rather remote in the current market landscape.

However, a recent decline in Bitcoin could resume if the $70,000 resistance zone does not hold. If this continues, then at that time, immediate supports sit very close to $68,000, before which lies a major support level at $67,500. If these levels fail to hold, then the next major support level is USD 67,200, price may fall towards USD 66,500 in the short term.

Indicators bring a mixed message from a technical standpoint. There’s a bearish zone nearing the hourly Moving Average Convergence Divergence (MACD) for Bitcoin, indicating that pressure to sell may taper. At the same time, the Relative Strength Index (RSI) for BTC/USD on the 1-hour chart hit over 50, indicating a possible turnaround in the ongoing bullishness. The tendency in this RSI is to show that BTC may have stabilized after its recent drop and could form another low to recover.

Conclusion

The $70,000 resistance is a critical point for Bitcoin’s recovery from the $67,500 zone. If this level falls, the bulls will likely need access to trend support to power them back through resists at $74,300 and continue trading higher to $71,200 and beyond. However, if resistance does not hold, Bitcoin could again see further declines, with initial support at $68,000 and $67,500.

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