Since July 29, Bitcoin has been grappling with the challenge of regaining the $70,000 threshold, a significant resistance level that has persisted over the last two quarters. This comes after Bitcoin surged to an all-time high of $73,700 in March. The cryptocurrency market has since witnessed various price corrections and consolidation phases. Yet, recent bullish sentiments have reignited hope for a potential resurgence as the year unfolds.
Could $70,000 Be Within Reach for Bitcoin?
Market analyst Rekt Capital has shared valuable insights into Bitcoin’s current path. He highlights the recent upward trend and the possibility of Bitcoin reclaiming the $70,000 mark. In particular, Rekt emphasizes that Bitcoin has broken free from a descending channel after surpassing the $65,000 level earlier in the month. This move has invalidated a sequence of lower highs that have been forming since mid-March.
This breakout marks the conclusion of the previous downtrend. Rekt noted that Bitcoin had repeatedly failed to surpass the channel’s resistance, but the latest weekly close has significantly altered market sentiment.
In his analysis, Rekt suggests that Bitcoin is currently retesting its former resistance point above $69,000. A successful retest at this level could confirm the breakout and potentially pave the way for further upward momentum.
Key Resistance Challenge Ahead for Bitcoin
If Bitcoin successfully retests this support level, the next target, according to the analyst, would be the range high at approximately $71,500. This level represents a critical challenge for Bitcoin as it would mark the first attempt to breach the top of the re-accumulation range since June.
Rekt argues that a successful move towards the area high beyond these levels would demonstrate a weakening of previous resistance, further enhancing BTC’s prospects for reaching new heights. However, the lingering question is: how significant could any potential retracement be if Bitcoin faces rejection at the range high?
Historically, since mid-March 2024, Bitcoin has faced deeper rejections, with declines of 21% to 25% observed on August 5 and September 6. Rekt concludes that Bitcoin is moving deeper into a previous resistance area at $66,000, which may soon transform into a support level. A successful retest of this level could precede a substantial reversal back to the $70,000 mark, reinforcing the bullish outlook for Bitcoin as it navigates through these pivotal price levels.
At the time of writing, Bitcoin is trading at $67,350, reflecting a 2% retracement within a 24-hour timeframe.
