After a short pullback last week, Bitcoin found support and resurged near a crucial resistance overnight with a 3% gain. It is currently on the verge of breaking out of a channel, poising for a massive run.
Bitcoin has continued to take the bears by surprise with the latest price increase, although the price is yet to break out of a descending channel since it reached a new all-time high (ATH) in the first quarter.
This classical channel, which captured a bearish correctional phase for four months, is likely to break any moment from now considering the bullish sentiments surrounding the leading cryptocurrency lately.
Looking at the latest surge in volatility, the crucial $70k level that coincides with the channel’s upper boundary is being tested. A daily close above this price level should signal a channel breakout capable of activating the most-anticipated parabolic move to a new ATH.
However, if BTC supply increases, leading to a rejection of this channel’s boundary, we may see another leg down. But with the recent rebound, the bulls are most likely to sustain pressure for a long period.
Currently, the bears are in disbelief of the latest increase and from the look of things, they may continue to suffer losses in the hands of the bulls. Bigger gains should be expected in the coming days.
Bitcoin’s Key Levels To Watch
While Bitcoin currently targets $70,118, it is facing hurdles at the $70k level. If the price flips through all these levels in the coming days, $72k and $73,777 (current ATH) would be the next resistance to watch.
The recently broken resistance of $68,474 is currently held as support. If the price drops below it, the $66,000 and $63,457 levels are support areas to consider for a test.
Key Resistance Levels: $70,118, $72,000, $73,777
Key Support Levels: $68,474, $66,000, $63,457.
- Spot Price: $69,699
- 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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