Bitcoin is gaining strength today as we head towards the weekly close. We can see how the 4hr EMA200 (yellow line currently at $70.5k) was providing exact 4hr support at every candle close yesterday, which has given a good foundation for an upside move this morning.
$72k - $72.5k is likely to be an area of resistance for BTC, as this was the highest 4hr close on Friday before the fast sell-off. 4hr acceptance above $72k and we could quickly see a move to test the $74k area once again.
Bulls needs to see $70.5k held on any further retest.
Yesterday I mentioned that Bitcoin was starting a move to test the $74k area, and this is exactly what happened.
The full retracement to the downtrend breakout (orange trendline) is almost complete, and the $69k area once again looks like a potential area of consolidation. This is now my first area of interest over the weekend. $BTC $ETH $BNB #CryptoDawar #MetaPlansLayoffs #PCEMarketWatch #TrendingTopic #Write2Earn
Bitcoin has broken the 4hr downtrend (orange line) with volume this morning, and we are seeing a push towards the $74k range highs. Resistance can be expected in that region as it has not been broken since the crash early in February.
If $74k is broken then relief towards $78k can be expected next. Any retest of $70k today and I would be looking for a reaction.
Bitcoin has once again reclaimed $69.5k (Monday High) on the 4hr timeframe but is under clear downtrend resistance (Orange line). There is also support being provided from $69.2k area (2021 ATH). This means the price is compressing tighter between these support and resistance levels, so I am seeing which breaks first. A 4hr close above the orange trendline and we could see a quick move back to $72k. Any strong close below $69.2k and $67k is a possibility.
Yesterday we mentioned the importance of the reaction of a retest of $69.5k. The last 4 hour close, just moments ago, came in slightly under $69.2k which means it lost the Monday High as well as 2021 ATH. This increases the chances of a further move down now, and I could be tempted to take a short from here, but with CPI figures due out soon I am happy to wait. Let's see if there is any quick reclaim of $69.5k today.