Bitcoin Price Shows Bullish Setup — Takeover Rally Incoming?

Bitcoin price started a decent increase above the $70,000 zone. BTC is now consolidating and might aim for more gains if it clears $72,000.

• Bitcoin started a decent recovery wave above the $70,000 zone.
• The price is trading above $70,000 and the 100 hourly simple moving average.
• There was a break above a bullish flag with resistance at $70,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might dip again if it trades below the $70,400 and $70,000 levels.

Bitcoin price remained elevated and extended its increase above the $69,200 level. BTC climbed above the $69,500 and $70,000 resistance levels.

There was a break above a bullish flag with resistance at $70,500 on the hourly chart of the BTC/USD pair. The pair even climbed above the $71,000 level. A high was formed at $71,750, and the pair is now consolidating gains near the 23.6% Fib retracement level of the recent upward move from the $68,971 swing low to the $71,750 high.

Bitcoin is now trading above $70,800 and the 100 hourly simple moving average. If the price remains stable above $70,400, it could attempt a fresh increase. Immediate resistance is near the $71,750 level. The first key resistance is near the $72,000 level.

A close above the $72,000 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.

If Bitcoin fails to rise above the $71,750 resistance zone, it could start another decline. Immediate support is near the $70,400 level or the 50% Fib retracement level of the recent upward move from the $68,971 swing low to the $71,750 high. The first major support is near the $70,000 level.

The next support is now near the $68,800 zone. Any more losses might send the price toward the $67,250 support in the near term. The main support now sits at $66,500, below which BTC might struggle to recover in the near term.

Technical indicators:

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

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

Major Support Levels – $70,400, followed by $70,000.

Major Resistance Levels – $71,750 and $72,000.