Bitcoin Price Pullback Tests Bulls — Bounce Attempt Incoming?

Bitcoin price started a recovery wave above the $68,500 zone. BTC is now consolidating and might aim for more gains above $70,500.

• Bitcoin started a decent recovery wave above the $69,200 zone.
• The price is trading above $68,500 and the 100 hourly simple moving average.
• There was a break below a bullish trend line with support at $70,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might dip again if it trades below the $69,280 and $68,000 levels.

Bitcoin price remained elevated and extended its increase above the $68,500 level. BTC climbed above the $69,200 and $70,000 resistance levels.

The bulls pushed the price above the 61.8% Fib retracement level of the downward move from the $74,062 swing high to the $65,646 low. However, the bears are still active below $72,000. The price faced rejection near the $71,600 level and started a downside correction.

There was a break below a bullish trend line with support at $70,400 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $68,500 and the 100 hourly simple moving average. If the price remains stable above $68,500, it could attempt a fresh increase. Immediate resistance is near the $70,250 level.

The first key resistance is near the $70,500 level. A close above the $70,500 resistance might send the price further higher. In the stated case, the price could rise and test the $71,500 resistance. Any more gains might send the price toward the $72,000 level or the 76.4% Fib retracement level of the downward move from the $74,062 swing high to the $65,646 low. The next barrier for the bulls could be $72,650.

If Bitcoin fails to rise above the $70,500 resistance zone, it could start another decline. Immediate support is near the $69,280 level. The first major support is near the $68,500 level.

The next support is now near the $68,000 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 bearish zone.

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

Major Support Levels – $68,500, followed by $68,000.

Major Resistance Levels – $70,500 and $72,000.