Bitcoin has been experiencing an upward trajectory, recently surpassing the $70,000 barrier. Market watchers are now keenly observing whether it will break the $71,500 resistance, which could pave the way for further increases. As the digital currency maintains its position above the $70,000 mark, along with the 100-hour Simple Moving Average, it shows strong market sentiment and potential for continued growth.
Bitcoin’s Ascend and Resistance Hurdles
Following a bullish run that broke several key resistances, Bitcoin reached a fresh weekly peak of approximately $71,557. Despite this, a modest dip brought its value just below a notable Fibonacci retracement level. It has since regained its footing, trading steadily above the $69,000 support level. The first immediate resistance is seen around $70,800, but a decisive move past $71,500 could see the cryptocurrency aiming for higher targets such as $72,500 and possibly $73,500.
Support Levels to Watch if Bitcoin Retraces
In the event Bitcoin fails to clear the $71,500 resistance, a downward correction could be triggered. The critical support level to watch in this scenario would be around $70,000. A further breakdown may lead to the first major support at $69,000 and subsequently, the pivotal $68,500 level. A close under this could precipitate a slide towards the $67,000 mark, with a possibility of further declines to the $66,000 support zone.
Technical indicators show a mixed picture, with the hourly MACD losing bullish momentum, while the hourly Relative Strength Index (RSI) remains comfortably above the midpoint. Investors and traders are keeping a close eye on these key support and resistance levels: $68,500 and $67,000 on the downside, and $70,500, $71,500, and $73,500 on the upside, to gauge Bitcoin’s next potential moves.