Bitcoin price started a downward correction from the $72,000 zone. BTC is currently stable around $70,000 and could aim for further gains in the short term.
- Bitcoin struggled above the $71,800 resistance zone.
- The price is trading above $69,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair, a major bullish trend line is forming with support at $69,200 (data feed from Kraken).
- Barring a break below $68,800, the pair is likely to see further upside.
Bitcoin price corrects rise
Bitcoin price rose at a pace above the $70,000 level. BTC even surged above $71,200 before the bears emerged around $72,000. A new weekly high was formed at $71,896, and the price recently started a downward correction.
The price fell below the $71,000 level and the 23.6% Fib retracement level of the upward wave from the swing low of $66,047 to the high of $71,896.
However, the bulls are active above the $68,800 support zone. Bitcoin is also trading above $69,000 and its 100-hour simple moving average. Additionally, there is a significant bullish trend line forming on the hourly chart of the BTC/USD pair with support at $69,200.
The price is currently facing resistance near the $70,500 level. The first major resistance could be at $71,200. The next major resistance could be at $71,850. A clear breakout above the $71,850 resistance could see the price move higher. In the above case, the price could move higher and test the $72,500 resistance.
If the bulls push the price further, it could head towards the $73,200 resistance zone. Any further gains could send BTC towards the $74,500 resistance.
Does BTC support dips?
If Bitcoin fails to break above the $71,200 resistance zone, it could continue its decline. Immediate support on the downside is near the $69,200 level and trendline.
The first major support is $69,000. The main support is currently forming around $68,800, or the 50% Fib retracement level of the upwave from the swing low of $66,047 to the high of $71,896. Any further losses could send the price towards the $67,300 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) – The RSI for BTC/USD is currently above the 50 level.
Major support level – $69,200 followed by $68,800.
Key resistance levels – $70,500, $71,200, $71,800.
