NEW DELHI (CoinChapter.com) — Bitcoin price traded to a new all-time high before retreating. BTC/USD is still following a strong uptrend and could soon hit $80,000.
Bitcoin Price Drops $10K After New ATH
In the last analysis with the weekly chart, we discussed how the Bitcoin price could reach $69,000. BTC did gain bullish momentum above the $60,000 resistance. It gained over 10% and broke many hurdles in the past few days.
There was a clear move above the 76.4% Fib retracement level of the main decline from the $68,958 swing high to the $15,588 low. Finally, the price spiked above the $69,000 level and traded to a new all-time high. Later, it saw a strong bearish reaction from the $69,200 zone.
Bitcoin declined over 10% and dived below the $65,000 support. It even retested the $60,000 support zone. However, the recent decline did not change the trend on the weekly chart.
More importantly, Bitcoin price is still following a parabolic curve with support at $56,300 on the weekly chart and is well above the 50-week simple moving average (blue). The bulls are active above the $60,000 and $59,000 support levels.
On the upside, BTC is facing resistance near the $66,800 level. The first major resistance is near the $69,200 and $70,000 levels. A close above the $70,000 resistance could set the tone for a move above the $72,000 level.
In the stated case, Bitcoin could even rally toward the $75,000 level. Any more gains might call for a test of the 1.236 Fib extension level of the main decline from the $68,958 swing high to the $15,588 low at $81,550.
Fundamentally, Bitcoin ETFs continue to see record volumes. Yesterday, Blackrock did $3.75B in volume, and the total volume for spot BTC ETFs was $9.7 billion.
Strong Decline In BTC?
If Bitcoin fails to clear the $69,200 resistance, there could be a downside correction. The first major support could be $60,000. The main support sits near the curve, currently at $56,300. A downside break and a weekly close below the parabolic curve might spark a strong decline.
In the stated case, BTC might correct lower toward the $48,500 support zone, below which the bears might push the price toward the 50-week simple moving average (blue) at $36,000.
Overall, Bitcoin is struggling near the $70,000 zone but stays in a positive zone. To continue higher, BTC must settle above $70,000. Conversely, there could be a pullback toward the $56,300 support soon.
