Following a 30% recovery in the past three weeks, Bitcoin scaled through several key resistance levels to reach a new milestone today. It saw a sharp rejection and is now showing signs of weakness on the day.
Adding $5k to its price in a week, Bitcoin reached its highest trading level of $68,474 after five weeks of trading. It just rejected the price level and now looks weak due to a 2% decrease in the past few hours.
Nevertheless, the market sentiment is still looking positive as the bulls remain in control. It is reaching a crucial trading level after witnessing a steady increase for almost three weeks. As shown on the daily chart, it is almost testing the upper boundary of the four-month falling channel.
Technically, there’s still room for growth. A surge above this channel could bring a test at the May-June high before retracing down. This may form an inverse head and shoulder pattern if the price stays above $66k.
Respecting the channel’s upper boundary could trigger a fresh drop in the market. There are lot of support to watch for a potential retracement but the key level to keep in mind for a rebound is $60,000.
Bitcoin’s Key Levels To Watch
Source: Tradingview
Looking at the 10% weekly gain to reach a new milestone, BTC may advance higher to the $70,118 resistance, located at the upper boundary of the falling channel. A break out of this channel could send the price straight to $72,000 and potentially $73,777 before rallying hard.
But currently, the price looks weak on the day. A further price drop could slip us back to $66,000. Below it lies $63,861. Lower retracement levels to consider for tests are the $62,000 and $60,000 supports.
Key Resistance Levels: $68,474, $70,118, $72,000
Key Support Levels: $66,000, $63,861, $62,000
Spot Price: $67,384
Trend: Bullish
Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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