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Since July 29, Bitcoin price has been struggling to reclaim the $70,000 level, which has proven to be a massive resistance barrier for the leading cryptocurrency. This resistance remained in place during the last two quarters of the year, after Bitcoin hit a low Highest level ever Valued at $73,700 in March of this year.
Since then, the market has seen price corrections and periods of consolidation, but recent bullish sentiment has sparked hope for a return in prices as the year progresses.
Could $70,000 be within reach?
Market analyst Rekt Capital provided insight into Bitcoin’s current trajectory, emphasizing the recent uptrend and the possibility of the cryptocurrency reclaiming the $70,000 mark.
It is worth noting that the rectum He pointed out Bitcoin has broken through a downtrend channel after surpassing the $65,000 level earlier this month, effectively negating a series of lower highs made since mid-March.
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This breakout signals the end of the previous downtrend. Rekt noted that Bitcoin has repeatedly failed to break through the channel resistanceHowever, the recent weekly close led to a shift in market sentiment.
In his analysis, Rekt shows that Bitcoin is currently retesting the previous resistance point above $69,000, suggesting that a successful retest could confirm the breakout and pave the way for further upward momentum.
Rekt also shows that the current retest is less supports The floors could see Bitcoin price drop to around $66,300, which is the channel top. This level previously served as a major barrier, preventing the price from reaching higher levels.
Reckitt noted that last week’s performance showed the importance of this area, as Bitcoin closed above the lower high, paving the way for a potential move to higher levels if the above-mentioned support continues.
The main resistance challenge facing Bitcoin
If Bitcoin succeeds in retesting this support level, the analyst predicts that the next target will be the high range at around $71,500. This level represents a crucial challenge for Bitcoin, as it will signal the first attempt to break through the top Reaccumulation range Since June.
Rekt goes on to say that a successful move towards the high zone above these levels would prove that previous resistance is weakening, boosting the odds of BTC reaching higher levels.
However, the question remains: how deep will any potential rebound be if Bitcoin faces rejection at the high range? Historically, since mid-March 2024, Bitcoin has faced deeper challenges rejectionWith declines of 21% to 25% on August 5 and September 6, respectively.
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straight He finishes BTC is heading deeper into the previous resistance area at $66,000, which may soon turn into support. A successful retest of this level could precede a major reversal to the $70,000 level, strengthening the bullish outlook for Bitcoin as it moves through these critical price levels.
At the time of writing, Bitcoin is trading at $67,350, recording a 2% retracement on the 24-hour time frame.
Featured image of DALL-E, chart from TradingView.com