If the Bitcoin price is to break above $70,000, there are key levels to watch for

Bitcoin, the leading cryptocurrency, has seen a surge in volatility this week, with supply pressure sitting at the $69,000-$70,000 resistance level. On the daily chart, two reversals of the upper barrier are expected, suggesting that sellers are aggressively defending the psychological level of $70,000. Bitcoin price rose 1.34% intraday, presenting another breakout opportunity for buyers, which could pave the way for a long-term recovery trend.

Analyzing the Bitcoin price action on the daily chart reveals the emergence of a bullish pattern that technicians call a "round bottom." This pattern marks a gradual shift from a bearish trend to a bullish trend and is characterized by a steady rise in prices across the board, similar to a "U" shape.

It is currently trading at $69,371, and the token price is expected to break above the resistance level of the neckline of the pattern in the $69,000-$70,000 range. Successfully breaking through this barrier will send a better signal that Bitcoin's price sustainability has reached new heights.

If the pattern holds, buyers should steer the asset to the theoretical goal of $124,000.

However, if the supply above $70,000 triggers a new correction, holders may find suitable support at $63,240 and then $57,500 to regain the exhausted bullish momentum. As the price is likely to develop into a cup-handle pattern, a potential pullback will still keep the bullish outlook intact.

A decrease in the supply of Bitcoin transactions indicates a bullish market sentiment. A tweet by crypto trader Ivan Tokenomija, shared by cryptocurrency analytics firm, highlights an important trend in the Bitcoin market. The chart shows declining Bitcoin balances on exchanges, which traditionally indicates that selling pressure has eased. A lower supply of transactions often results in investors transferring Bitcoin to private wallets, often for long-term holdings.

This "hold" behavior is often seen as a bullish signal, meaning that prices are likely to rise due to the underlying economic principles of scarcity – when supply decreases and demand remains the same or increases, prices tend to rise.

Specifications :

Pivot Levels: As the Bitcoin price enters price discovery mode, buyers may see an indirect supply of $77,635 and $91,400, which is consistent with the R2 and R3 of traditional pivot levels.

Average Directional Index: The 50% ADX slope reflects an excessive rally and a small pullback may be needed to regain bullish strength.

(Source: Sahil Mahadik)