Key Points:
- Bitcoin price opened at $70,000, surging past $71,200 and reaching a high of $71,682.
- Key resistance at $71,200 and $71,650; support levels at $70,200 and $70,000.
- MACD is losing bullish momentum; RSI is below 50, indicating potential selling pressure.
The cryptocurrency market continues to experience significant volatility, and Bitcoin (BTC) is no exception. As of 7th June 2024, Bitcoin opened at a robust $70,000, showcasing an optimistic sentiment among traders and investors.
Bitcoin Surges Past $71,200 After $70,000 Start
Bitcoin began the day at $70,000, and almost immediately, there was a noticeable upward momentum. This price increase allowed Bitcoin to clear several key levels. Initially, Bitcoin surged past the $70,500 mark, demonstrating a strong bullish trend. Subsequently, it broke through $71,200, further solidifying investor confidence. The highest point reached during this surge was $71,682, just shy of the significant resistance level at $71,650.
Bitcoin Price Correction: Dips Under $70,650
Following this impressive rally, Bitcoin faced a downside correction. This is a typical occurrence in financial markets where prices tend to retrace after a significant rise before potentially continuing their upward trajectory. Bitcoin declined below the 23.6% Fibonacci retracement level, a crucial technical indicator to identify potential reversal points. Additionally, the price dipped below the swing low of $67,285 and the swing high of $71,682. A key break occurred when Bitcoin fell below the bullish trend line at $70,650, testing the Support at $70,200.
Bitcoin Price Holds Above $70,000 Post-Correction
Despite the correction, Bitcoin continues to trade above the crucial $70,000 level. It is also important to note that Bitcoin trades above the 100-hourly simple moving average (SMA), which generally indicates a positive short-term outlook. This level often acts as a dynamic support, helping to sustain the price during minor pullbacks.
Bitcoin Faces Resistance at $71,650, Support at $70,200
Bitcoin faces several resistance levels that must be cleared to sustain upward movement. The immediate resistance levels include $70,800, $71,200, and $71,650. Should Bitcoin surpass these, additional resistance can be expected at $72,000 and $73,200. On the downside, the immediate support level is $70,200, followed by major Support at $70,000. If the price continues to fall, the next levels of Support are $69,500 and $68,500.
MACD Weakens, RSI Below 50 for Bitcoin
The technical indicators present a mixed picture. The Moving Average Convergence Divergence (MACD) is losing pace in the bullish zone, indicating that the upward momentum may weaken. Additionally, the Relative Strength Index (RSI) is currently below 50, which suggests that the market is not overbought territory but might face more selling pressure.
