Since July 29, the Bitcoin price has been grappling with the $70,000 mark, a formidable resistance barrier for the leading cryptocurrency. This resistance has persisted throughout the last two quarters of the year, after BTC hit an all-time high of $73,700 back in March. Since then, the market has faced price corrections and consolidation periods, but recent bullish sentiment has sparked hopes for a price resurgence as the year progresses.
Market analyst Rekt Capital has provided insights into Bitcoin’s current trajectory, highlighting the recent uptrend and potential for the cryptocurrency to regain the $70,000 mark. Rekt noted that Bitcoin recently broke through a downtrending channel after surpassing the $65,000 level earlier this month, effectively invalidating a series of lower highs established since mid-March. This breakout signifies the end of the previous downtrend and has shifted market sentiment.
According to Rekt, Bitcoin is currently retesting its former resistance point above $69,000. A successful retest could confirm the breakout and pave the way for further upside momentum. Rekt further explained that the current retest of lower support floors could see Bitcoin’s price dip to around $66,300, which is the channel top and a significant barrier in the past.
Last week’s performance underscored the importance of this area, as Bitcoin closed above the lower high, setting the stage for a potential transition to higher levels if the support holds. If Bitcoin successfully retests this support level, the analyst expects the next target to be the range high at approximately $71,500. This level represents a crucial challenge for Bitcoin, marking the first attempt to breach the top of the re-accumulation range since June.
Rekt argues that a successful move towards this area would indicate weakening previous resistance, further boosting Bitcoin’s prospects of climbing higher. However, the depth of any potential retracement if Bitcoin faces rejection at the range high remains a question. Historically, since mid-March 2024, Bitcoin has experienced deeper rejections with declines of 21% to 25% on August 5 and September 6, respectively.
Rekt concludes that Bitcoin is moving deeper into a prior resistance area at $66,000, which may soon become support. A successful retest of this level could precede a significant reversal back to the $70,000 mark, reinforcing the bullish outlook for Bitcoin as it navigates these critical price levels. At the time of writing, Bitcoin is trading at $67,350, registering a retracement of 2% in the past 24 hours.