Bitcoin Bulls Look to $70K Breakout—Can Support Hold?
- Bitcoin is nearing the crucial $70,000 resistance level, where substantial liquidity and psychological significance reside for traders.
- The cryptocurrency’s price is supported by the Daily 200MA and 200 EMA, which have been instrumental in its bullish movement.
- If Bitcoin holds above the moving averages, investors expect a higher low formation, but failing to do so could trigger a market correction.
Bitcoin in the last few weeks has shown unrelenting bullish pressure, setting higher high and higher low formation on the price chart. According to the current trend analysis, the cryptocurrency is heading towards the $70,000 resistance levels that many stockists consider crucial. It has considerable amounts of working capital, and therefore remains a target of interest for both sides.
Focus on $70,000 Resistance and Market Trends
Relative to its price action, the four-hour chart shows that Bitcoin has become a popular trading instrument. This is because of its continuous price breakout above past highs and holding support at higher lows recently. The cryptocurrency is best anchored with Daily 200 Moving Average (200MA) and 200 Exponential Moving Average (200 EMA). These indicators have given Bitcoin the solid foundation which it needs to maintain its upward move.
#Bitcoin Has been moving up in recent weeks and has made multiple higher lows & higher highs.
The big level to watch, which also has a ton of liquidity sitting above it, is the $70K level.
The bulls would want to hold on to the Daily 200MA/EMA to at least make a higher low. pic.twitter.com/gPoQ9htB7K
— Daan Crypto Trades (@DaanCrypto) October 17, 2024
With bitcoin hovering near $ 70,000 traders are keen on it. It is neither simply psychological but there is much total cash at this level posted as well.
Getting out of this resistance level may signal more upsides whereas a failure to do so could lead to short-term reversal. Market players are keen in awaiting if all possibilities of Bitcoin staying above the 200 MA and 200 EMA can be achieved or starts to fall towards a bear run.
Outlook for Bulls and Bears
The bullish stance has boosted investors’ morale and several people wait for a higher low to be set if Bitcoin maintains its support levels. But if the price does not hold above these moving averages then chances of consolidation or correction before another rally may occur. Markets today are finely poised, with both the bulls and bears waiting for a breakout at $70,000.A level of $70,000 continues to be of interest as traders assess the ability of Bitcoin to extend its recovery or a possible test/backdrop before further upside.
