Bitcoin on the Verge of Hitting Critical Resistance at $70K: What to Anticipate in the Next 48 Hours
At the recent Bitcoin Conference in Nashville, former US President Donald Trump expressed his support for Bitcoin, sparking a surge in trader confidence and driving the BTC price close to $70,000. However, bearish activity intervened before this milestone was achieved. While the price seems to have stabilized at these levels, bullish momentum may not be strong enough to push it beyond the current range, indicating the potential for a significant price movement.
The $70,000 resistance level has proven to be relatively fragile, with the bulls struggling to sustain momentum. This has led to significant pullbacks, with price drops of 18% to 20%. Despite briefly reaching $69,800, buyer activity has diminished, potentially signalling a slowdown in the rally. Nevertheless, there are indications of a hidden bullish divergence, suggesting the possibility of a robust upward trend in the future.
Read Also: Shiba Inu Ecosystem Ignites: Whale Activity and Shibarium Surge
On the weekly chart, Bitcoin has entered a bullish phase, breaking above a key resistance that had been in place for over a year. The price is now approaching a crucial resistance zone between $69,750 and $71,916. A successful breakthrough by the bulls could lead to a bullish monthly close in the range of $70,800 to $71,500. While the RSI indicator reflects a bullish outlook, concerns arise from the Bollinger bands, which indicate possible price consolidation below the resistance zone.
Final Thought and Price Action
If the bulls fail to breach this zone and continue to gather strength, the BTC price may consolidate below $70,000 for several weeks, potentially reaching a turning point. Another scenario involves a dip to $62,000 or $61,000 followed by a rebound to $70,000, potentially completing a ‘head and shoulders’ pattern and triggering a significant uptrend after breaking the neckline.
Therefore, the upcoming monthly close carries great significance for the Bitcoin price rally, as it will likely influence trading trends for the rest of the quarter.
Read Also: Dogecoin is Showing Potential For a Bullish Breakout Despite Low Trading Volume and Whale Activity
Follow us on Twitter, Facebook, Telegram, and Google News
Michael Onche: Crypto aficionado and seasoned analyst. With a keen eye for market trends and a passion for blockchain technology, he deciphers the intricacies of cryptocurrency with precision. Michael’s expertise and insightful content make him a trusted guide for navigating the dynamic world of digital assets.
