Bitcoin continues its upward trend, consolidating its gains above the $70,000 resistance level. The cryptocurrency is expected to resume its rise if it surpasses the near-term $71,500 resistance level. So, what levels should be monitored from this point on?
Critical Levels to Monitor for Bitcoin
The BTC/USD pair is moving in a positive zone above the $66,500 level. The price is trading above $70,000 and the 100-hour Simple Moving Average. A significant uptrend line with support at $68,500 is observed, indicating potential for further near-term gains in Bitcoin.
Recently, Bitcoin’s price showed a strong increase above the $68,800 resistance area, surpassing the $69,500 and $70,000 resistance levels. Eventually, the price tested the $71,500 resistance zone and reached a new weekly high around $71,557.
However, after this rise, a slight decline occurred, and the price is seen trading below the 23.6% Fibonacci retracement level. Nevertheless, BTC has managed to stay above $69,000 and is currently trading above $70,000 and the 100-hour Simple Moving Average.
The immediate resistance level is around $70,800. However, the price appears to need to break the $71,500 resistance for further gains. If this resistance level is surpassed, BTC is expected to gain strength and possibly target the $72,500 and even $73,500 resistance levels.
Potential Downward Movement in BTC Could Bring These Levels into Play
Bitcoin seems unable to break above the $71,500 resistance zone. Does this indicate a potential decline? Analyses on the BTC/USD pair suggest that if the $71,500 resistance is not breached, another downward trend could commence. The immediate support level on the downside is currently around $70,000.
Technically, the first major support level is identified at $69,000, followed by the $68,500 support level, which is also below the trend line. If the price closes below $68,500, a decline towards the $67,000 level could be expected. Further losses could potentially move the price towards the $66,000 support zone in the near term.
Looking at the technical indicators, the hourly MACD is losing momentum in the bullish zone. However, the hourly Relative Strength Index (RSI) is currently above the 50 level.
Key support levels are $68,500 and $67,000, which serve as significant references. On the upside, resistance levels worth monitoring are $70,500, $71,500, and $73,500.
