Bitcoin, $73,500 Warning...No Hope if 'This Point' Isn't Broken

▲ Dollar (USD), Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) attempted a rebound after establishing a support base above the $76,000 level, but an analysis suggests that the risk of a decline could increase again if it fails to break through the $79,000 resistance line. The key turning points for the short-term trend were presented as the $78,300 and $79,000 resistance lines.

NewsBTC reported on May 21 (local time) that Bitcoin began a recovery trend above the $76,800 level, and could aim for further gains if it surpasses the $78,300 resistance line. Bitcoin formed a base above $76,000, then recovered to $76,500, and subsequently crossed the $76,650 and $77,000 levels.

Technically, it surpassed the Fibonacci 23.6% retracement line of the downtrend from the $82,017 high to the $76,020 low. It also broke through the bearish trend line that was forming resistance at $77,200 on the BTC/USD hourly chart, based on Kraken data. However, for a full upward reversal, it needs to consecutively overcome the $78,300 short-term resistance and the $79,000 key resistance.

$79,000 was presented as a major resistance line coinciding with the Fibonacci 50% retracement line of the previous downtrend. If a close occurs above this level, Bitcoin could test the $80,500 resistance, and if the uptrend continues, $81,500 followed by $82,000 could emerge as the next hurdles.

Conversely, if it fails to break through the $79,000 resistance line, Bitcoin could again face downward pressure. Immediate support was identified at $77,200, with the first major support at $76,500. Subsequently, the $76,000 level is the next support, and further losses could push it down to $75,000.

In terms of technical indicators, the hourly Moving Average Convergence Divergence (MACD) is accelerating in bullish territory, and the hourly Relative Strength Index (RSI) is above 50. However, the ability to break through $79,000 is considered a key variable for the short-term trend, as a drop below the major support of $73,500 could make short-term recovery difficult.

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