Bitcoin (BTC) is retesting resistance levels as its price recovers the $71,000 mark. However, an analyst has warned that the bear market is expected to continue and that the latest bounce could be short-lived.
Bitcoin Eyes Reclaim Of Former All-Time High ResistanceOn Tuesday, Bitcoin surged 7.5% from the Sunday lows toward the $71,000 area, retesting this key level for the second time in a week before momentarily retracing toward the $69,000 level.
As the analyst explained, these levels turned into resistance in the monthly timeframe after the flagship cryptocurrency closed February at $66,970. Since then, BTC has repeatedly tested these key levels from below in the daily timeframe but has failed to reclaim them.
“For Bitcoin to begin shifting this structure, price would need to Monthly Close above $69,000 by the end of March to position itself for a reclaim of the 2021 All Time High as support,” the analyst asserted.
“Similarly, the 2024 All Time High at $71,300 would likely require multiple Monthly Closes above the level in order to properly establish a reclaim process,” he added.
BTC Bounce To Be Short-Lived?While the former ATHs risk turning into resistance, Rekt Capital noted that Bitcoin is currently finding crucial support at the 50-month Moving Average (MA), around the $64,000-$65,000 area.
However, once the breakdown occurs, the level usually becomes a new resistance before further downside continuation follows. Now, “Bitcoin is effectively sandwiched between two key reactive zones,” he affirmed, which could lead to short-term relief before the mid-term downside continues.
As of this writing, Bitcoin trades at $71,307, a 3% increase in the daily timeframe.
