Bitcoin, if it holds $70,000, historic new high booked...enters final verification stage

▲ Bitcoin (BTC) / ChatGPT generated image

As Bitcoin (BTC) breaks past $70,000 and enters a new phase, whether it firmly establishes this price level as a support line has emerged as a critical turning point that will determine the fate of the ongoing bull market.

According to U.Today, a cryptocurrency specialized media outlet, on April 9 (local time), Bitcoin is no longer in a simple price discovery phase but is undergoing a test to assess its ability to maintain the crucial support level of $70,000. U.Today analyzed that the current $70,000 mark is more than just a number; it acts as an intermediate stop in the transition from a downtrend to a broader uptrend. Chart analysis shows that Bitcoin recently broke out of a descending channel, signaling a shift in momentum, but subsequent movements after the breakout have been somewhat limited.

Bitcoin has not quickly moved away from the breakout zone, lingering around that price level and showing hesitation. The Relative Strength Index (RSI) is rising but has not yet entered the overbought territory, and trading volume is not explosive. This indicates that while momentum exists in the market, it has not yet exerted a dominant force. If buyers do not take decisive action at the current price, Bitcoin risks being exposed to a short-term downtrend.

If Bitcoin fails to hold the $70,000 level, the extent of the decline is expected to be significant. Below $70,000, a large amount of liquidity is concentrated, making it highly likely that a collapse of the support line could trigger short-term panic selling and a flood of stop-loss orders. If this scenario materializes, concerns are raised that Bitcoin's price could fall to the mid-$60,000s. This is because if the symbolic high of $70,000 crumbles, the market's psychological support level could also collapse.

Conversely, if the $70,000 support line holds firm, the arguments of bulls will gain more strength. Consolidation and establishment above this price level signify that the market is accepting the current high price, which serves as a foundation for targeting higher resistance levels in the future. The current stage is regarded as a validation step, going beyond simply confirming a trend, to verify the market's price legitimacy. A price breakout has already occurred, and the market is now determining if that value is justifiable.

Ultimately, the market is undergoing a period of judgment to determine if Bitcoin's breakout was legitimate. Investors are closely watching at the $70,000 turning point to see whether the bulls or bears will gain the upper hand. If this verification stage is successfully completed, Bitcoin will secure stronger upward momentum and be ready to continue its full-fledged rally. The current stagnation period is interpreted as either a breather before a significant surge or a warning signal before a potential decline.

*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.*