Bitcoin ‘Sandwiched’ Between Two Key Zones As Price Tops $71,000 – Major Move Ahead?

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Bitcoin (BTC) is retesting absorption levels arsenic its terms recovers the $71,000 mark. However, an expert has warned that the carnivore marketplace is expected to proceed and that the latest bounce could beryllium short-lived.

Bitcoin Eyes Reclaim Of Former All-Time High Resistance

On Tuesday, Bitcoin surged 7.5% from the Sunday lows toward the $71,000 area, retesting this cardinal level for the 2nd clip successful a week earlier momentarily retracing toward the $69,000 level.

The cryptocurrency has been trading betwixt the $63,000-$71,000 terms scope implicit the past month, concisely surging supra the precocious bound during past week’s marketplace bounce. However, BTC’s terms has failed to clasp its aggregate breakout attempts amid the marketplace volatility.

In a Monday analysis, marketplace watcher Rekt Capital observed that Bitcoin is interacting with 2 cardinal levels that signifier “an important overhead resistance”: the 2021 and 2024 all-time highs (ATHs) astatine $69,000 and $71,300, respectively.

As the expert explained, these levels turned into absorption successful the monthly timeframe aft the flagship cryptocurrency closed February astatine $66,970. Since then, BTC has repeatedly tested these cardinal levels from beneath successful the regular timeframe but has failed to reclaim them.

Instead, it has produced upside wicks supra $69,000 and $71,300, signaling that the erstwhile ATHs are acting arsenic rejection levels successful shorter timeframes and could go cardinal absorption if it monthly closes beneath them.

“For Bitcoin to statesman shifting this structure, terms would request to Monthly Close supra $69,000 by the extremity of March to presumption itself for a reclaim of the 2021 All Time High arsenic support,” the expert asserted.

“Similarly, the 2024 All Time High astatine $71,300 would apt necessitate aggregate Monthly Closes supra the level successful bid to decently found a reclaim process,” helium added.

BTC Bounce To Be Short-Lived?

While the erstwhile ATHs hazard turning into resistance, Rekt Capital noted that Bitcoin is presently uncovering important enactment astatine the 50-month Moving Average (MA), astir the $64,000-$65,000 area.

Historically, the flagship crypto has initially reacted from this level successful carnivore markets, but yet loses it arsenic support. The caller bounce from the 50-month MA is enabling BTC to trial the 2021 and 2024 ATHs arsenic absorption “for the clip being.”

However, erstwhile the breakdown occurs, the level usually becomes a caller absorption earlier further downside continuation follows. Now, “Bitcoin is efficaciously sandwiched betwixt 2 cardinal reactive zones,” helium affirmed, which could pb to short-term alleviation earlier the mid-term downside continues.

The expert besides observed that BTC appears to beryllium lone halfway done the carnivore market, leaving the doorway unfastened for further downside. In an X post, helium noted that BTC’s shortest carnivore marketplace lasted astir 365 days, portion it is presently conscionable implicit 150 days into the existent one.

Other analysts person suggested that the cryptocurrency could travel the 2022 rhythm playbook. At the time, the terms importantly retraced from the rhythm peak, consolidated for months, and past had a last bull trap earlier its 2nd large correction question toward the marketplace bottom.

As of this writing, Bitcoin trades astatine $71,307, a 3% summation successful the regular timeframe.