Bitcoin Dips but Holds Strong: Bullish Momentum Intact

Bitcoinist
Updated May 22, 2024 06:30
Mitrade

Bitcoin price started a downside correction from the $72,000 zone. BTC is now consolidating near $70,000 and might eye another increase in the near term.


■  Bitcoin struggled above the $71,800 resistance zone.

■  The price is trading above $69,000 and the 100 hourly Simple moving average.

■  There is a key bullish trend line forming with support at $69,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).

■  The pair could start another increase unless there is a move below $68,800.


Bitcoin Price Corrects Gains


Bitcoin price gained pace for a move above the $70,000 level. BTC even spiked above $71,200 before the bears appeared near $72,000. A new weekly high was formed at $71,896 and the price recently started a downside correction.


The price declined below the $71,000 level and the 23.6% Fib retracement level of the upward wave from the $66,047 swing low to the $71,896 high.


However, the bulls are active above the $68,800 support zone. Bitcoin also trades above $69,000 and the 100 hourly Simple moving average. Besides, there is a key bullish trend line forming with support at $69,200 on the hourly chart of the BTC/USD pair.


The price is now facing resistance near the $70,500 level. The first major resistance could be $71,200. The next key resistance could be $71,850. A clear move above the $71,850 resistance might send the price higher. In the stated case, the price could rise and test the $72,500 resistance.

Bitcoin Price

If the bulls push the price further higher, there could be a move toward the $73,200 resistance zone. Any more gains might send BTC toward the $74,500 resistance.


Are Dips Supported In BTC?


If Bitcoin fails to climb above the $71,200 resistance zone, it could continue to move down. Immediate support on the downside is near the $69,200 level and the trend line.


The first major support is $69,000. The main support is now forming near $68,800 or the 50% Fib retracement level of the upward wave from the $66,047 swing low to the $71,896 high. Any more losses might send the price toward the $67,300 support zone 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 above the 50 level.


Major Support Levels – $69,200, followed by $68,800.


Major Resistance Levels – $70,500, $71,200, and $71,800.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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