Bitcoin Approaches Key Resistance and Support Levels as Analysts Monitor Market Trends
Bitcoin is once again capturing attention as it nears important thresholds in the market that could determine its short-term trajectory. Analysts are closely observing a resistance level at around $70,500, which could either lead to new highs or signal a deeper correction.
Resistance at $70,500
Market experts have identified the $70,500 level as a significant resistance point for Bitcoin. Analyst Tara suggests that surpassing this level might be challenging. If Bitcoin fails to break through this barrier, it could potentially retreat to a support level around $67,800. This particular support level has historical significance, previously acting as a breakout point and potentially serving as a strong foundation if tested again.
Bitcoin’s 4H Chart shows that its RSI is slightly above 60, indicating that it is approaching levels where price reversals are common. While this does not typically indicate overbought territory, it does warrant cautious optimism among traders.
Support Levels to Watch
In the event of a downward correction, several key support levels are expected to play crucial roles. Prominent analyst Michaël van de Poppe suggests that Bitcoin is currently in a consolidation zone and may retest the $68,000 mark before resuming its upward movement. This consolidation phase signifies a healthy market correction, allowing Bitcoin to gather strength for another rally.
Michaël also highlights a key resistance level at $73,660 on his charts, which Bitcoin has struggled to surpass in the past. Several support levels exist, with $67,789 offering short-term support. In the event of a deeper market correction, $60,748.29 and $50,521.95 are identified as potentially strong support zones.
Supply and Demand Zones
Analyst Ali points out that the supply zone between $70,180 and $70,600 is particularly critical, as it contains over 450,000 addresses holding approximately 273,000 BTC. This concentration could present significant resistance due to the large amount of Bitcoin held within this range.
On the other hand, intoTheBlock’s global in and out of the money (GIOM) data reveals several “in the money” zones where the majority of holders are seeing profits. This reduces the likelihood of selloffs in these ranges. Notable among these are the $59,595.76 to $61,698.29 range, involving 3.26 million BTC, and the $63,800.82 to $65,903.34 range, with around 960.5k BTC.
Close to the current price level, the $68,005.87 to $70,108.39 range is critical as it includes many recent buyers who are “at the money.” This suggests that these levels may experience increased activity depending on market movements.
Disclaimer: This article provides information and should not be considered financial advice. The views expressed in this article are solely the author’s opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.