Bitcoin is currently maintaining its gains above the $65,000 support level. On the daily chart, BTC/USD is trading above a crucial bullish trend line with support at $68,000. As long as it remains above the 50-day simple moving average and $65,000, the price has the potential to experience another increase.
In the previous analysis, we noted that Bitcoin’s price successfully cleared several important obstacles around $68,000, allowing it to enter a positive zone once again. It even surpassed the $71,200 resistance level and reached a high of $71,922 before experiencing a minor correction.
During this correction, the price dropped below the $70,000 support level and dragged Ethereum down below $3,880 as well. However, Bitcoin is still in a favorable position above the 50-day simple moving average and $65,000.
On the daily chart, it appears that Bitcoin’s price is consolidating near the 23.6% Fibonacci retracement level of the upward movement from the $56,710 swing low to the $71,920 high. Additionally, there is a significant bullish trend line forming with support at $68,000.
The immediate resistance on the upside is situated around the $70,000 zone. The first major resistance is now forming near the $72,000 zone, which represents the recent high. If the price manages to break above this resistance, it could ignite a strong upward movement.
The next key resistance level is at $73,000, and if this is surpassed, the price could gain even more bullish momentum. In such a scenario, the bulls may even target the $75,000 region.
However, if Bitcoin’s price struggles near $72,000 and continues to decline, immediate support can be found around the $68,000 level and the aforementioned trend line. A break below the trend line could lead to further downward movement.
The next crucial support level is around $65,000, in close proximity to the 50-day simple moving average. This level coincides with the 50% Fibonacci retracement level of the upward movement from the $56,710 swing low to the $71,920 high.
If the bulls fail to defend the $65,000 support, the price could experience further declines, potentially reaching the $62,500 support level.
Overall, Bitcoin is currently consolidating its gains above the important $65,000 support level. Although a minor pullback may occur, it is expected that the price will resume its upward movement and surpass the $70,000 level in the coming days.