Bitcoin price started a strong increase above the $70,000 zone. BTC is consolidating gains and might aim for more gains above the $71,500 zone.
- Bitcoin gained pace for a move above the $69,500 and $70,500 levels.
- The price is trading above $70,000 and the 100 hourly simple moving average.
- There was a break above a key declining channel with resistance at $68,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might extend gains if it stays above the $70,250 and $69,500 levels.
Bitcoin Price Rallies 5%
Bitcoin price managed to climb higher above the $68,800 resistance zone. BTC gained pace for a move above the $69,500 and $70,000 levels.
Besides, there was a break above a key declining channel with resistance at $68,800 on the hourly chart of the BTC/USD pair. The pair even rallied above the $72,000 level. A high was formed at $72,728, and the price started a downside correction. There was a move below the 23.6% Fib retracement level of the upward move from the $67,734 swing low to the $72,728 high.
Bitcoin is now trading above $70,500 and the 100 hourly simple moving average. If the price remains stable above $70,500, it could attempt a fresh increase. Immediate resistance is near the $72,000 level. The first key resistance is near the $72,750 level. A close above the $72,750 resistance might send the price further higher. In the stated case, the price could rise and test the $73,500 resistance. Any more gains might send the price toward the $74,000 level. The next barrier for the bulls could be $75,000.
Another Decline In BTC?
If Bitcoin fails to rise above the $72,750 resistance zone, it could start another decline. Immediate support is near the $70,800 level. The first major support is near the $70,250 level or the 50% Fib retracement level of the upward move from the $67,734 swing low to the $72,728 high.
The next support is now near the $69,500 zone. Any more losses might send the price toward the $68,800 support in the near term. The main support now sits at $67,500, below which BTC might struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 60 level.
Major Support Levels – $70,800, followed by $70,250.
Major Resistance Levels – $72,000 and $72,750.
