Bitcoin Price Rally Slows, Consolidation Signals Possible Next Move

Bitcoin price started a steady increase above $70,500 and $72,500. BTC is now consolidating and might aim for a fresh increase above $72,500.

• Bitcoin started a fresh increase after it settled above the $70,000 zone.
• The price is trading above $70,000 and the 100 hourly simple moving average.
• There is a bullish trend line forming with support at $69,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might dip again if it trades below the $70,000 and $69,000 levels.

Bitcoin Price Starts Downside Correction

Bitcoin price extended its increase above the $68,500 zone. BTC gained pace for a move above the $70,000 resistance zone. The price even rallied above the $72,000 resistance.

Finally, the bears appeared near $74,000. A high was formed at $74,062, and the price recently started a downside correction. There was a move below $72,000 and the 23.6% Fib retracement level of the upward move from the $66,164 swing low to the $74,062 high.

Bitcoin is now trading above $70,000 and the 100 hourly simple moving average. There is also a bullish trend line forming with support at $69,000 on the hourly chart of the BTC/USD pair.

If the price remains stable above $70,000, it could attempt a fresh increase. Immediate resistance is near the $72,000 level. The first key resistance is near the $72,500 level. A close above the $72,500 resistance might send the price further higher. In the stated case, the price could rise and test the $73,200 resistance. Any more gains might send the price toward the $74,000 level. The next barrier for the bulls could be $75,000 and $75,500.

Downside Correction In BTC?

If Bitcoin fails to rise above the $72,000 resistance zone, it could start another decline. Immediate support is near the $70,000 level or the 50% Fib retracement level of the upward move from the $66,164 swing low to the $74,062 high. The first major support is near the $69,000 level.

The next support is now near the $68,500 zone. Any more losses might send the price toward the $68,000 support in the near term. The main support now sits at $66,200, below which BTC might struggle to recover in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $70,000, followed by $69,000.

Major Resistance Levels – $72,000 and $72,500.