Bitcoin Hovers Near $70K, Showing Signs of Resilience

Bitcoin's recent surge to $69,000 on March 5th was met with high volatility in the market, causing a sharp correction to $61,289. However, this plunge did not deter the overall weekly uptrend, as traders swiftly took advantage of the dip and aggressively bought the digital asset.

By March 6th, Bitcoin had regained its footing, climbing back above $67,000, signaling a strong appetite among market participants to accumulate the coin at lower levels. An analysis of the 4-hour BTC/USD chart reveals that bulls were actively trying to push the price higher, aiming to breach the resistance at $69,055.

BTC Faces Resistance at $70,000 Level

This level has acted as a stumbling block, preventing Bitcoin from achieving a new all-time high. If bulls can successfully defend the $65,744 support and break through the $69,055 resistance, Bitcoin could hit a new record high, reaching $72,000 within a short period.

However, the Relative Strength Index (RSI) reading of 60.84 suggests a decline in buying momentum, which could hinder Bitcoin's ability to maintain its upward trajectory. Should the momentum continue to wane, Bitcoin might undergo a correction, potentially dipping below $63,000.

On the other hand, if bulls can guard the $65,744 level, a bounce toward $80,000 could be possible in the mid-term, further solidifying Bitcoin's dominance in the cryptocurrency market.

Bitcoin's impressive performance over the past week, with a 17% increase and a remarkable 50% gain since the beginning of the year, has outpaced other major cryptocurrencies like Ethereum and Binance Coin. With a market capitalization exceeding $1.4 trillion, Bitcoin has solidified its position as the ninth-largest asset globally.

Despite the enthusiasm surrounding its recent rallies, Bitcoin is currently exhibiting signs of a potential correction, which could impede its ability to achieve a rapid breakthrough above the $70,000 psychological threshold. Bitcoin has entered a consolidation phase, between $66,230.45 and $70,083.05, with a price change of +1.78% in the last 24 hours.

The current local support is found near the $57,932 level, aligning with the 50-day moving average, a crucial technical level that often acts as a stronghold for the asset's price. This area may serve as a foundation for Bitcoin if bearish pressure intensifies

Conversely, resistance is firmly established at the $70,000 level, a psychological resistance where sell orders tend to be placed. If the correction deepens, Bitcoin may seek support at lower levels, with the next substantial support zone around the $50,117 mark, which is also near the 100-day moving average

Market sentiment is mixed, reflecting the uncertainty surrounding Bitcoin's immediate path. While long-term confidence in Bitcoin remains high due to its established track record and increasing mainstream adoption, the short-term outlook is clouded by current market conditions and the $70,000 resistance level.

Based on Bitcoin's current trading price of $68,017, support levels are identified at $66,584, $64,964, and the strongest at $63,530. Similarly, resistance levels are situated at $69,637, $71,070, and $72,690.

Bitcoin's Growth Cycle Analysis

On-chain platform CryptoQuant sheds light on Bitcoin trends using the Adjusted Output Profit Ratio (aSOPR) metric. This metric indicates the ratio of spent outputs in profit at a specific time window, adjusted to exclude movements of coins existing for less than an hour. Examining past cycles, CryptoQuant observes that growth phases typically span between 83 to 387 days, with an average duration of approximately 235 days.

Currently, the ongoing growth period has lasted 138 days, suggesting a potential conclusion within the next 100-150 days. Once the Bitcoin growth cycle halts, analysts predict that altcoins may lead the next leg of the broader market rally.