Bitcoin Price Bounce from $60,000 Support: Is a Bullish Break Above $70,300 Possible?

Bitcoin’s Q2 2024 performance closed with a 12% price decrease, signaling a notable downturn in the cryptocurrency’s value. As highlighted by CryptoRank, a top analytic firm, June alone saw Bitcoin’s price drop by 7%, raising concerns among investors. Despite these declines, there are signs of potential recovery.

As further noted by Michaël van de Poppe, CIO & Founder of MN Trading Consultancy, Bitcoin’s price trajectory followed a familiar pattern, finding support at $60,000 and then moving upward. This support level is crucial, as it suggests a potential bottoming out. 

Resistance levels at $71,736.8 and $70,300 have proven challenging for Bitcoin. The $71,736.8 level has been a significant barrier, marked by multiple rejections and strong selling pressure. Meanwhile, the $70,300 level is another critical point where bearish rejections could occur. For Bitcoin to continue its bullish momentum, breaking through these levels is essential.

On the support side, the $63,331.2 level is pivotal, as it indicates the current price range. The area between $60,000 and $58,000 has historically provided robust support, acting as a safety net if prices fall. This green zone on the chart represents a strong support area, crucial for stabilizing Bitcoin’s price.

The recent price action shows a bounce from the $60,000 support zone, pushing upward towards resistance. However, a bearish divergence has emerged, indicating that the upward momentum might weaken as Bitcoin approaches resistance levels. This divergence suggests caution for traders, as it could signal a potential reversal.

In terms of trend analysis, the short-term outlook appears bearish. The multiple rejections at higher resistance levels and the bearish divergence indicate potential challenges ahead. The primary area for a potential low during this correction is the green support zone, assuming Bitcoin fails to break above $70,300.

The Relative Strength Index (RSI) is trending upward, showing increasing momentum. However, it’s crucial to monitor for potential overbought conditions as Bitcoin nears resistance levels. The live Bitcoin price stands at $62,625.43, with a 24-hour trading volume of $20,991,598,216, up 2.09% in the last 24 hours.