Bitcoin, the world’s largest cryptocurrency by market capitalization, is seemingly on a path of recovery, following a dip from the $72,500 zone. The price of Bitcoin is currently fluctuating below $70,500 and the 100 hourly Simple Moving Average. However, Bitcoin has managed to break above a connecting bearish trend line with resistance at $68,300 on the hourly chart of the BTC/USD pair (data feed from Kraken). This could potentially indicate a shift in momentum, with a bullish pace likely to be gained if the currency settles above the $70,000 resistance zone.
This recent decline comes after Bitcoin failed to reach a new all-time high, triggering a fresh drop below the $72,500 zone. This was followed by a further decline below key support levels of $71,500 and $70,000. The digital currency even dipped below $68,500, testing the $67,500 zone before settling at a low of $67,483.
However, Bitcoin is showing signs of recovery, with the price rising above the $68,500 resistance level. It even surpassed the 23.6% Fibonacci retracement level of the downward move from the $73,576 swing high to the $67,483 low.
On the flip side, the price could face resistance near the $69,500 level, which is close to the 50% Fib retracement level of the same downward move. The first key resistance is anticipated near the $70,000 mark. A clear move above this resistance could potentially drive the price higher, with the next significant resistance expected at $71,200. A successful close above this resistance level might initiate more gains, potentially testing the $72,500 resistance level. Further gains could even push the price towards the $73,200 resistance level.
However, if Bitcoin fails to surpass the $70,000 resistance zone, it could be subjected to another decline. The immediate support on the downside lies near the $68,000 mark. The first major support is expected near the $67,500 level, followed by the next support at the $67,200 zone. If the price drops further, it could potentially test the $66,500 support level in the near term.
In terms of technical indicators, the MACD is on the cusp of losing pace in the bearish zone, while the RSI for BTC/USD is now above the 50 level, signaling a potential trend reversal.
Major support levels to watch out for are $68,000, followed by $67,500. Meanwhile, significant resistance levels are expected at $69,500 and $70,000. The coming days will reveal whether Bitcoin can recover from its recent decline and aim for a move above the coveted $70,000 mark.
