Bitcoin price is consolidating above the $70,000 resistance zone. BTC may remain range bound for some time before the bulls attempt a move towards $75,000.
- Bitcoin price is struggling to gain pace above the $71,500 resistance zone.
- The price is trading above $70,500 and the 100 hourly simple moving average.
- On the hourly chart of the BTC/USD pair, a short-term uptrend channel is forming with support at $70,750 (data feed from Kraken).
- A breakout of the $71,500 resistance zone could quickly start a new rally.
Bitcoin price remains range bound
Bitcoin price has formed a base above the $69,000 resistance zone. BTC has risen above the $70,000 resistance zone and back into the positive zone.
Although the price broke above the $71,000 level, the bears were active below the $71,500 resistance. A recent high was formed near $71,306, and the price is currently consolidating its upside. It is trading near the 23.6% Fib retracement level, rising from a swing low of $69,128 to a high of $71,306.
Bitcoin is currently trading above $70,500 and its 100-hour simple moving average. On the hourly chart of the BTC/USD pair, a short-term uptrend channel is also forming with support at $70,750.
Source: BTCUSD on TradingView.com
Immediate resistance is near the $71,300 level. The first major resistance level could be at $71,500. A clear move above the $71,500 resistance zone could cause the price to start a strong move higher. In the above case, the price may even break through the $72,500 resistance zone in the short term. The next major resistance level is near the $73,500 zone.
Will BTC drop again?
If Bitcoin fails to rise above the $71,200 resistance zone, further decline could begin. Immediate support on the downside is near the $70,750 level and channel trend line.
The first major support is at $70,200, the 50% Fib retracement level of the swing low of $69,128 to the high of $71,306. The next support will be $70,000. If the closing price falls below $70,000, the price may start falling towards the $69,120 level. Any further losses could send the price towards the $68,500 support zone in the short term.
Technical indicators:
Hourly MACD – The MACD is currently losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – BTC/USD’s RSI is currently above the 50 level.
Major support level – $70,750 followed by $70,200.
Key resistance levels – $71,200, $71,500, $73,500.
