Bitcoin is regaining color: Is a return beyond $70,000 possible?

The price of Bitcoin is experiencing a significant recovery, appreciating nearly 10% since its recent low at $60,800. However, key resistance stands in the way of BTC returning beyond $70,000. Let’s analyze the market outlook.

An encouraging recovery for Bitcoin

Bitcoin began an impressive rally from the support zone at $60,800, crossing several resistance levels including $64,000. This rise allowed BTC to surpass the 100 hour moving average as well as the 76.4% Fibonacci retracement of the recent decline.

This bullish dynamic is also illustrated by the hourly MACD which is gaining ground in the positive zone and the hourly RSI which is now moving above 60. These technical indicators suggest growing buying momentum that could support further upside.

However, bitcoin faces major resistance in the $68,800 area. A clear crossing of this threshold would open the way to a test of $70,000 and then potentially $72,500. But caution remains in order until BTC has confirmed its return above $68,800.

Bitcoin technical analysis chart: Source: NewsBTC
Source: NewsBTC

Downside risks to watch despite optimism

Despite the recent recovery, the bitcoin market is not immune to a bearish reversal in the event of failure at the $68,800 level. A decline below $66,800 would call into question the short-term upward trend.

The key supports to watch in the event of a correction are at $65,500 then $64,800. An inability to preserve these levels could result in BTC returning towards $63,000 or even $62,500 in the short term. Investors must therefore manage their risk carefully.

The next few days will be decisive in gauging the strength of this rebound. Industry news, the evolution of on-chain indicators and overall market sentiment will be key elements to take into account to anticipate the trajectory of bitcoin.

In short, bitcoin is experiencing a significant rebound, but its short-term future will depend on its ability to cross the $68,800 barrier. If this resistance gives way, a return to historic highs will be possible. Conversely, failure now would pave the way for a deeper correction.

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