Bitcoin has recently surpassed the $68,000 resistance level, continuing an upward trend as it consolidates its position. Currently, the cryptocurrency is trading above $68,500, buoyed by the support of the 100-hour Simple Moving Average. A contracting triangle is emerging on the hourly chart, with support resting at around $68,750 for the BTC/USD pair.
The positive momentum for Bitcoin is evident, especially as it has managed to breach the $68,800 barrier and even crossed above $69,000, establishing a peak near $69,428. Following this surge, the price has entered a phase of consolidation above the 23.6% Fibonacci retracement level of the upward trend from the recent swing low of $66,644 to the peak of $69,428. Current trading positions Bitcoin above $68,200, reinforcing its stability given the moving average support.
However, Bitcoin may soon encounter resistance at the $69,200 level, with the first significant resistance level identified at $69,500. Should it break through this level clearly, an increase could propel the price towards $70,000, where further bullish traction could set the stage for new highs, potentially reaching around $71,200 and eventually $72,000.
Conversely, if Bitcoin fails to overcome the $69,500 resistance, it may trigger a downward correction. Immediate support is observed near the $68,750 level within the triangle’s trend line. Should the situation worsen, the first substantial support can be found around $68,050, coinciding with the 50% Fibonacci retracement of the recent upward movement. Further declines could lead Bitcoin toward the $67,400 range, with a more significant drop possibly approaching the $66,500 support level.
In summary, while Bitcoin is currently showing signs of strength, it faces critical resistance levels that, if breached, could lead to significant price gains. Conversely, a failure to progress may result in notable declines.
