Bitcoin Poised for Possible Breakdown as Recovery Faces Resistance; Halving Fuels Optimism

Following a recent recovery attempt, Bitcoin (BTC) is encountering resistance and has dipped to a daily low of $68,888. The price action over the past three weeks indicates a possible double-top pattern, suggesting a bearish trend. Key support levels to watch include $69,000, $64,000, and $60,775, while resistance levels to monitor are $71,800, $73,777, and $75,000. The trend remains bullish on a monthly outlook, but a clear surge above last month's high is needed to confirm an extension of the bullish sentiment.

Bitcoin Poised for Breakdown as Resistance Thwarts Recovery, Halving Hopes Fuel Optimism

In the wake of its recent recovery, Bitcoin (BTC) has encountered an insurmountable resistance level, preventing further upward momentum. As a result, the cryptocurrency has become trapped within a narrow trading range, hovering near a critical support barrier.

Despite a spirited recovery from March's correction, Bitcoin's inability to breach the crucial $72,000 resistance, a level that once marked the initial correction point of $73,700, has cast a shadow over its bullish prospects. Twice rejected, the price has tumbled to a daily low of $68,888, signaling a potential breakdown in the near term.

While short-term traders remain jittery amid the sideways consolidation, long-term investors maintain an unwavering optimism. The upcoming halving event, scheduled to occur in approximately three weeks, has kindled hopes for a substantial upswing in the cryptocurrency's price.

Technical analysis reveals that Bitcoin has been forming a double-top pattern, suggesting a bearish reversal. However, the long-term trend remains bullish, supported by higher highs and higher lows on a monthly chart. A decisive breakout above last month's high would solidify the positive sentiment and extend the bullish rally.

Currently, Bitcoin faces immediate support at $69,000, followed by $64,000 and $60,775. Should the bears break below these levels, a further decline towards $60,000 could ensue.

On the upside, a surge above $70,000 could pave the way for a retest of $71,800 resistance, with $73,777 serving as the next target. A breakout from this area could propel the price towards $75,000 and ultimately $80,000.

Key Resistance Levels:

• $71,800
• $73,777
• $75,000

Key Support Levels:

• $69,000
• $64,000
• $60,775

Spot Price: $69,462

Trend: Bullish

Volatility: Moderate

Caution: This article does not constitute trading or investment advice. It is essential to conduct thorough research before purchasing any cryptocurrency or investing in any services. Follow @nulltxnews on Twitter for the latest updates on cryptocurrency, NFTs, AI, cybersecurity, distributed computing, and the metaverse.