Title: Bitcoin Holds Firm Above Support as Bulls Eye Higher Levels
Introduction:
Bitcoin has managed to consolidate its gains above the crucial $66,500 resistance level, indicating a potential upward movement. After successfully clearing a bullish flag pattern at $67,000, the cryptocurrency could experience another surge if it maintains its position above the 50-day simple moving average (blue) and $64,500.
Bitcoin Price Consolidates Above Support:
Bitcoin’s price has shown signs of strength, holding above the $65,000 pivot zone. Following a solid base formation and a steady increase above the $63,500 resistance zone, the cryptocurrency has surpassed the $65,000 resistance and the 50-day simple moving average (blue) at $64,500.
Bullish Flag Breakout and Ethereum Rally:
Bitcoin’s recent breakout of a crucial bullish flag pattern at $67,000 on the daily chart has been further fueled by the rally in Ethereum. This has pushed the price above the $70,000 resistance zone, with a peak at $71,922, well above the 50-day simple moving average (blue).
Temporary Pullback Amid Bullish Trend:
Although there has been a minor pullback below the 23.6% Fibonacci retracement level, which measures the upward move from the swing low of $56,711 to the high of $71,922, the bulls have remained active near the bullish flag trend line. This suggests that the price is consolidating its gains above the channel resistance, which now acts as support.
Potential Upside Targets:
The immediate resistance on the upside is located at the $70,000 zone, followed by a major resistance at $72,000. A successful break above this level could trigger a significant upward movement, with the next key resistance sitting at $72,800. If this level is surpassed, the price could accelerate even higher, potentially aiming for the $75,000 region.
Potential Downside Risks:
On the other hand, if the price struggles near the $72,000 or $72,800 resistance levels, it may initiate another decline. The immediate support now lies at the $67,000 level, followed by a major support at $65,000 and the 50-day simple moving average (blue). Additionally, a further support level is forming near $64,300, which aligns with the 50% Fibonacci retracement level.
Conclusion:
Bitcoin continues to consolidate its gains above the crucial support level of $65,000. With the potential to resume its upward movement above $72,000, the cryptocurrency could test the $75,000 level in the days ahead. However, a failure to protect the $64,300 support could lead to a larger decline, with the price potentially dropping to $60,500.
