Bitcoin Tests Support After Stalling Below $70,000

Bitcoin (BTC) has pulled back after failing to decisively breach the $70,000 resistance level. The price is currently hovering around $68,800, with analysts cautiously optimistic about a potential rebound.

TL;DR

• Bitcoin price dropped after failing to surpass $71,500.
• Price finds support near $68,800 and the 100-hour moving average.
• Resistance established at $69,650 and $70,000.
• Break above $70,500 could signal further gains.

Analysts Eye Escape Velocity

Some analysts believe a return to $73,000 could propel Bitcoin into “escape velocity,” a scenario where the price surges rapidly with minimal resistance. Crypto analyst James Check suggests the market is not yet overheated, indicating room for further growth. However, he warns that short-term holders nearing profit zones around $73,000 could trigger a sell-off.

On-Chain Data Shows Slowing Capital Inflow

Glassnode, an on-chain analytics firm, reports a slowdown in capital entering the Bitcoin market. While the Bitcoin Realized Cap continues to rise, the rate of increase has diminished compared to the recent rally. This suggests less aggressive buying and potentially lower demand.

BTC/USD Technical Outlook

Bitcoin faces immediate resistance at $69,650 and a stronger barrier at $70,000. A clear break above $70,500 could signal a move towards $71,200 or even a retest of the all-time high near $72,500.

Conversely, a failure to overcome $70,000 could lead to a decline towards $69,000 and potentially lower. The next major support level sits at $68,800, followed by $67,420.

Overall, Bitcoin’s next move hinges on its ability to overcome the $70,000 hurdle. Bulls need to gather momentum to push the price higher, while bears will be looking to exploit any signs of weakness.

ABOUT THE AUTHOR See More

Arslan Ali Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Ali Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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