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21/05/24
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Technical Outlook on the Performance of Bitcoin (BTC)
A look at the chart of BTC/USD shows the formation of a base at price levels above $66.5k prior to the bulls initiating a new move to the upside. BTC was pushed past the barrier area at $68k after ETH rallied past $3,200.
The bulls pushed BTC strongly past the barrier area at $70k, prompting a more than 8 percent increase in price. BTC was able to visit the barrier area around $72k, leading to the formation of a fresh weekly high at $71,896. It is currently undergoing consolidation of gains.
Likewise, it is currently quite above the 23.6% Fibonacci correction level of the upswing from $66,047 swing low to $71,896 high. Its 1-hour chart shows that it is currently trading at levels above $79k, as well as above the 100 hourly SMA. The same chart shows the formation of a connecting bullish trend line with a support level at $70.5k.
At the same time, BTC is currently encountering a barrier level close to $71,850. The initial key barrier level may be encountered at $72k. The immediate main barrier level may be encountered at $72.5k.
The ability of the bulls to push BTC clearly past the barrier level at $72k may bring about more moves to the upside. In such a situation, BTC may move higher and visit the barrier level at $73.2k.
The ability of the bulls to stay active may bring about more upside moves toward the barrier area at $74.4k. If there are any additional gains, the bulls may be able to pave the way for a move to the barrier level at $75k.
On the other hand, the failure of the bulls to push BTC past the barrier area at $72k may empower the bears to initiate a new move to the downside. The next support level on the way downward is close to $70.5k, as well as near the trend line.
The initial key support level exists at $70k. The key support level is currently being formed close to $68,850 or the 50% Fibonacci correction level of the upswing from $66,047 swing low to $71,896 high. If there are any additional losses, the bears may be able to pull BTC towards the support area at $67,450 over the coming few sessions.
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