Key Levels To Watch If Bitcoin Price Breaks $70000 This Weekend

The leading cryptocurrency Bitcoin showcased a surge in volatility this week, witnessing supply pressure at $69000-70000 resistance. The daily chart projects two reversals from the overhead barrier indicating the sellers are actively defending the $70K psychological level. With an intraday gain of 1.34%, the Bitcoin price projects another breakout opportunity for buyers which may pave the way for a prolonged recovery trend.

Also Read: BlackRock’s Bitcoin Holding Surpasses MicroStrategy Amid $2 Bln Net Inflows This Week

Is the $70,000 Threshold Set to Break?

Analyzing the Bitcoin price movements on the daily chart reveals the emergence of a bullish pattern that technicians refer to as a “rounding bottom.” This pattern signifies a gradual shift from a bearish to a bullish trend, characterized by a steady and rounded rise in price that resembles the shape of a “U”.

Currently trading at $69371, the coin price teases a bullish breakout from the pattern’s neckline resistance at the $69000-$70000 range. A successful breakout above this barrier will give a better signal for Bitcoin price sustainability for new heights.

If the pattern holds true, the buyers should lead this asset to a theoretical target of $124000.

However, if the overhead supply at $70000 triggers a new correction, the coin holders may find suitable support at $63240, followed by $57500 to regain the exhausted bullish momentum. A potential pullback will still keep the bullish outlook intact as the price may develop into a cup-and-handle pattern.

Also Read: BlackRock’s Bitcoin Stash Reaches $12.3B as BTC Hits New ATH

Bitcoin’s Shrinking Exchange Supply Signals Bullish Market Sentiment

A tweet from crypto trader Ivan Tokenomija, shared by the crypto analytics firm Santiment, highlights a significant trend in the Bitcoin market. The chart indicates a declining balance of Bitcoin on exchanges, which traditionally suggests a reduced selling pressure. A lower exchange supply often leads to the inference that investors are moving BTC to private wallets, typically for long-term holding. 

Everyday less and less #BTC on exchanges!!! Supply is crashing, Bitcoin price will skyrocket!!! #santiment pic.twitter.com/nDf60KxI04

— Ivan Tokenomija (@tokenomija) March 9, 2024

This “holding” behavior is usually perceived as a bullish sign, implying a potential price increase due to the basic economic principle of scarcity – when supply is reduced, and demand stays constant or increases, the price tends to go up.

Technical Indicator 

• Pivot Levels: As Bitcoin price enters price discovery mode, the buyers may witness overhead supply at $77635 and $91400 which are aligned with the R2 and R3 of traditional pivot levels.
• Average Directional Index: The ADX slope at 50% reflects an overextended rally which may need a minor pullback to regain bullish strength.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.