Bitcoin is currently in a recovery phase after a recent decline from the $72,500 level. The cryptocurrency, which faced significant downward pressure, has begun to correct losses and is setting its sights on overcoming the $70,000 resistance barrier.
After experiencing volatility, Bitcoin saw a downturn below key support levels, including $71,500 and $70,000, even dipping as low as $67,483. However, the market has begun to show signs of recovery, with the price moving above the $68,500 resistance level. This upward movement signifies a potential shift, as Bitcoin crossed the 23.6% Fibonacci retracement level from its previous high of $73,576 to the recent low.
Despite these advancements, Bitcoin continues to trade below the crucial $70,000 level and the 100-hour simple moving average. Notably, the price may face challenges near the $69,500 level, which is close to the 50% Fibonacci retracement level of the recent decline. Successfully breaking above the $70,000 level could position Bitcoin for further gains, potentially targeting $71,200 as the next key resistance level. A sustained close beyond this point may open the door to testing the $72,500 resistance.
Conversely, if Bitcoin cannot breach the $70,000 resistance zone, the risk of another decline looms. Immediate support is expected around the $68,000 level, with significant support levels positioned at $67,500 and $67,200. A continued downward trajectory could see Bitcoin approach the $66,500 support level.
Current technical indicators suggest mixed signals, with the hourly MACD showing weakening bearish momentum while the relative strength index is above the neutral 50 mark, hinting at potential bullish momentum if conditions align favorably.
