The Bitcoin price rose more than 8% and rose above $70,000. BTC is now consolidating gains and showing signs of more upside in the short term.
- Bitcoin started a new rise above the $70,000 resistance zone.
- The price is trading above USD 79,000 and the 100 hourly Simple Moving Average.
- A connecting bullish trendline is forming with support at $70,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rise again unless the bears push it below $68,800.
Bitcoin Price Rises 8%
Bitcoin price formed a base above the USD 66,500 level. BTC started a new rise above the USD 68,000 resistance zone after Ethereum rose above USD 3,200.
There was a strong move above the USD 70,000 resistance zone. The price rose more than 8% and even tested the USD 72,000 resistance zone. A new weekly high was made at $71,896 and the price is now consolidating gains.
The price is well above the 23.6% Fib retracement level of the upward move from the $66,047 swing low to the $71,896 high. Bitcoin is also trading above $79,000 and the 100 hourly Simple Moving Average. Moreover, a connecting bullish trendline is forming with support at $70,500 on the hourly chart of the BTC/USD pair.
The price is now facing resistance near the USD 71,850 level. The first major resistance could be at $72,000. The next major resistance could be at USD 72,500. A clear move above the USD 72,500 resistance could push the price higher. In the mentioned case, the price could rise and test the USD 73,200 resistance.
If the bulls remain in action, the price could rise towards the USD 74,400 resistance zone. Any further gains could send BTC towards the $75,000 mark.
Are dips limited in BTC?
If Bitcoin fails to climb above the $72,000 resistance zone, a downside correction could occur. The immediate downside support is near the $70,500 level and the trendline.
The first major support is $70,000. Key support is now forming near $68,850 or the 50% Fib retracement level of the upward move from the $66,047 swing low to the $71,896 high. Any further losses could send the price towards the $67,450 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 70 level.
Major support levels – USD 70,500, followed by USD 70,000.
Major resistance levels – $71,850, $72,000 and $72,500.