Bitcoin Price Approaches Major Resistance Zone

Bitcoin has made multiple attempts since March to rise beyond $71,500.0. The failure on the fifth attempt in June sent the price searching for support. Subsequently, the price dipped towards the bullish order block at $53,000.0. Buyers appeared to have regained their momentum, as evidenced by the presence of a hammer candle on July 5, which displayed a very long wick beneath, indicating a strong take-off signal.

In July, the price overcame the last bearish order block of the downtrend, aided by the formation of three white soldiers, which showed strong buying pressure. A bullish order block has since formed, propelling the price further to the major resistance zone of $71,500.0.

Bitcoin Key Levels

• Supply Levels: $71,500.0, $80,000.0, $100,000.0
• Demand Levels: $59,000.0, $53,000.0, $43,600.0

What are the Indicators Saying?

When the price approached the bullish order block, the Relative Strength Index (RSI) indicated that the market was significantly oversold. The subsequent price surge above the Moving Averages (periods 9 and 21) led to a crossover, signaling a trend reversal. Currently, the RSI shows a strong bullish trend, nearing an overbought state as the price approaches the major resistance zone, which has been in place since March.

A break above this zone could lead to the price rising to the next psychological level, potentially forming a new all-time high (ATH). Conversely, a Change of Character (ChoCh) at this zone could signal a bearish reversal if the resistance level is not broken. Therefore, it is crucial to closely monitor the price action around $71,500.0.

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