Bitcoin has seen a significant surge in price, breaking above the $71,500 resistance level. The leading cryptocurrency is currently consolidating its gains and could potentially target higher levels above $73,250.
- Bitcoin’s price momentum led to a successful breach of the $71,500 and $72,000 barriers.
- Currently, the price is trading above $71,500 and is supported by the 100-hourly simple moving average.
- A bullish flag pattern breakout occurred with resistance at $71,250 on the BTC/USD hourly chart (data feed from Kraken).
- If Bitcoin maintains levels above $71,500 and $71,250, it may continue its upward trajectory.
Bitcoin Price Outlook
The recent price action saw Bitcoin surpass the $70,500 resistance zone, propelling it above $71,500 and $72,000 levels.
A breakout above the $72,500 mark was also witnessed, with the BTC/USD pair forming a high at $73,130 before experiencing a minor correction. However, the price remains above the 100-hourly simple moving average and is currently trading above $72,000.
If the price remains stable above $71,500, it could potentially initiate another bullish move. The immediate obstacle lies near the $72,500 level.
The primary resistance level to watch is $73,250. A decisive break above this level could pave the way for further upside potential, targeting $74,000 and possibly $74,500. The ultimate hurdle for the bulls would be the $75,000 mark.
Potential Downside Correction
If Bitcoin fails to breach the $73,250 resistance, a downside correction could ensue. Immediate support is anticipated near $71,500 or the 61.8% Fib retracement level from the recent swing low to high.
The crucial support levels are situated at $71,250 and $70,500, with further downside potentially leading to the $70,000 level. The critical support rests at $69,500, below which a recovery for Bitcoin may face challenges in the short term.
Technical indicators:
Hourly MACD – The MACD is exhibiting a bullish trend.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level.
Major Support Levels – $71,500, followed by $71,250.
Major Resistance Levels – $72,500 and $73,250.