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Since July 29, the price of Bitcoin has been struggling to regain the $70,000 mark, which has proved to be a formidable resistance barrier for the leading cryptocurrency. This resistance was present in the last two quarters of the year, after BTC took a hit world class of $73,700 back in March this year.
Since then, the market has experienced price corrections and periods of consolidation, but recent bullish sentiment has led to hope for a price rebound as the year progresses.
Is $70,000 Achievable?
Market analyst Rekt Capital provided information about the current direction of Bitcoin, emphasizing the recent rise and the possibility of the cryptocurrency to return to the $70,000 mark.
Notably, Rekt he revealed that Bitcoin broke the bottom line after crossing the $65,000 level earlier this month, effectively making a series of highs and lows established since mid-March.
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This breakout marks the end of the previous downtrend. Rekt noted that Bitcoin has repeatedly failed to cross channels resistancebut the most recent week’s close has changed market sentiment.
In his analysis, Rekt explains that Bitcoin is currently retracing its previous resistance point above $69,000, suggesting that a successful retest could confirm a breakout and pave the way for more momentum.
Rekt goes on to explain that the current re-evaluation of the ground support the bottom saw the price of Bitcoin sink to around $66,300, which is the upper channel. This level previously served as an important barrier, preventing the price from reaching higher levels.
Rekt pointed out that last week’s performance showed the importance of this area, as Bitcoin closed above the lower highs, setting the stage for a move to higher levels if the aforementioned support holds.
A Key Challenge to Bitcoin’s Resistance
If Bitcoin successfully retests this support level, the analyst expects the next target to be the upper range around $71,500. This level marks an important challenge for Bitcoin, as it would mean the first attempt to break Bitcoin’s peak. to regroup the range from June.
Rekt continues to argue that a successful move higher above these levels will signal that previous resistance is weakening, further improving BTC’s prospects of reaching higher levels.
However, the question remains: how deep will any potential recovery go if Bitcoin faces a rejection in the upper range? Historically, since mid-March 2024, Bitcoin has experienced a deep rejectionwith a decrease of 21% to 25% on August 5 and September 6 respectively.
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The Rect it concludes that BTC is moving deeper into the previous resistance area at $66,000, which may quickly turn into support. A successful retest of this level could precede a significant pullback back to $70,000, strengthening the outlook for Bitcoin as it breaks through these key price levels.
At the time of writing, BTC is trading at $67,350, registering a reversal of 2% in a 24-hour period.
Featured image from DALL-E, chart from TradingView.com
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