Bitcoin Price Faces Uphill Battle, but Technical Indicators Point to More Upside Potential
Bitcoin’s price is currently consolidating above the $69,000 support level, with the next key hurdle at $71,500. If the cryptocurrency manages to surpass this resistance area, it could see a sustained upward movement.
Despite encountering resistance near $71,500, the price of Bitcoin continues to display positive signs. It is currently trading above $69,000 and the 100-hourly Simple Moving Average, indicating a bullish trend. Additionally, a significant bullish trend line is forming, providing support at $69,120 on the BTC/USD hourly chart.
Previous attempts to breach the $71,500 level have been unsuccessful, resulting in a downside correction towards the $68,400 support level. However, Bitcoin has since initiated a decent recovery, surpassing the 23.6% Fibonacci retracement level of the previous downward move from the $71,746 swing high to the $68,366 low.
The immediate resistance lies around $70,000, followed by the 50% Fibonacci retracement level at $71,200. However, the main obstacle remains at $71,500. A clear breakthrough above this level would likely ignite a further upward movement, potentially leading Bitcoin to surpass the $72,500 resistance zone in the near future.
In the event that Bitcoin fails to overcome the $71,200 resistance zone, it could experience another downturn. The immediate support level on the downside is around $69,200 and the bullish trend line. If these levels are breached, the next major support lies at $68,400, followed by $67,500. Further losses may push the price towards the $66,000 support zone.
Technical indicators present a mixed outlook, with the MACD losing momentum in the bearish zone on the hourly chart, while the hourly RSI for BTC/USD remains above the 50 level, indicating potential strength.
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