Bitcoin 'Hesitates' Again at $74,000 Resistance...Must Hold $72,500 to Survive

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) is once again wavering below $74,000, making the collapse of the $72,500 support line a key variable that will determine whether a short-term decline resumes.

According to crypto media outlet NewsBTC on June 1 (local time), Bitcoin began a new downward trend below the $73,800 range. Bitcoin extended its losses after failing to hold above $74,200, and is currently trading below $73,800 and the 100-hour simple moving average.

Bitcoin previously remained in a bearish zone after failing to hold the $75,000 support area. It then fell below $74,500 and $74,000 in succession, and at one point dipped below $73,000. The low was formed at $72,470, after which it attempted a slight recovery above the 23.6% Fibonacci retracement line of the decline from the high of $77,810 to the low of $72,470.

However, the rebound was capped near $74,000. NewsBTC reported that, according to Kraken data, an ascending channel with a support line at $73,550 on the Bitcoin-Dollar trading pair hourly chart has broken downwards. If Bitcoin maintains a stable trend above $72,000, it could attempt another rebound, with immediate resistance suggested at $73,850 and the first major resistance at $74,000.

If Bitcoin closes above the $74,000 resistance line, it could test the $74,500 resistance. If the upward momentum continues, the next target could be $75,150 or the 50% Fibonacci retracement line of the decline from the high of $77,810 to the low of $72,470. Subsequently, the next barrier for the bullish camp is suggested at $75,500.

Conversely, if Bitcoin fails to overcome the $74,200 resistance zone, another decline could begin. Immediate support is at $73,000, and the first major support is at $72,500. The next support zone is $72,000, and if further losses occur, it could temporarily fall to $71,500. Key support is located at $70,850, and falling below this zone could make a short-term recovery more difficult.

Technical indicators also leaned towards the bearish side. The hourly Moving Average Convergence Divergence (MACD) is accelerating in the bearish zone, and the hourly Relative Strength Index (RSI) for the Bitcoin-Dollar trading pair has fallen below 50. NewsBTC suggested key support levels at $72,500 and $72,000, and major resistance levels at $74,000 and $74,500.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*