Bitcoin price has shown tremendous resilience in recent weeks, with bulls eyeing the $70,000 level as a key resistance point. Several technical indicators suggest Bitcoin remains on a bullish trajectory, despite a brief correction in the last few trading sessions. This analysis focuses on both the daily and weekly charts to assess the likelihood of Bitcoin surpassing the $70,000 threshold.
The chart focuses on Bitcoin’s daily price action, showing a decline of around 0.65% with the price falling to approximately $66,988. This chart presents a clear picture of Bitcoin's recent price movements, and a few indicators highlight key insights:
Candlestick Patterns: Bitcoin has experienced a downward movement from its recent high of $67,426.01, showing some weakness. The recent candlestick patterns indicate a potential trend reversal, with bearish momentum starting to appear after a rally that led the price close to $70,000 earlier this month.
Volume Analysis: The volume has been relatively low, with 3.872k BTC traded. Lower volume suggests indecisiveness in the market, which often precedes stronger moves. Traders may be waiting for a clearer direction, and low volume during a price drop could indicate a lack of strong selling pressure.
Relative Strength Index (RSI): The RSI is shown at around 61.59, a level slightly above neutral. This suggests Bitcoin is not overbought or oversold, but it’s closer to the overbought territory. Previous price actions from August and September show that when RSI reached these levels, a minor correction followed. The RSI divergence around 59.45 and 61.59 shows a potential weakening of bullish momentum.
This chart provides a broader perspective on Bitcoin price action through the weekly timeframe. It emphasizes Bitcoin’s significant price movements and historical pivot levels.
Major Price Levels: Bitcoin price has tested several major levels, bouncing off a recent high of around $73,777 and now retracing to $66,994.59. These levels are critical, as the price near $70,000 acts as a strong resistance point. The long-term support level around $48,000 and $56,552 suggests that Bitcoin has formed strong foundational support, while resistance in the $70,000 range poses challenges for upward momentum.
Moving Average Convergence Divergence (MACD): The MACD on the weekly chart indicates a bullish crossover from previous months, with the MACD line sitting at 1,842.22 and the signal line at 1,619.37. This suggests ongoing bullish momentum, although the histogram shows a decrease in buying pressure. The MACD is one of the most reliable indicators for trend strength, and while the lines remain positive, the weakening histogram suggests possible consolidation before any further upward movement.
Pivot Levels: Bitcoin’s current pivot points in the chart show a cluster of price actions at key support and resistance levels. These pivot highs and lows (around $70,000 to $73,777) indicate potential strong resistance zones. A break above these levels could signal a continuation of the bullish trend, while failure to do so could lead to retracement toward support levels at $56,552 or $49,000.
Bitcoin price remains on track to test the $70,000 resistance level in the short term. While technical indicators like RSI and MACD suggest possible consolidation or a minor pullback, the broader trend remains bullish. Key price levels, such as $70,000 as resistance and $56,552 as support, will play an important role in determining Bitcoin’s next move.
If Bitcoin manages to break through $70,000 with strong volume, a rally toward $73,000 or even $75,000 becomes more probable. However, if Bitcoin fails to hold above $66,000, a temporary correction toward $60,000 or lower could occur.