"Must break $76,500 to go"...Bitcoin enters a crossroads for resuming its rally

▲ Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) is continuing its short-term rebound and seeking further gains, but an analysis suggests that its direction could be determined by whether it breaks through a key resistance level.

According to NewsBTC on April 21 (local time), Bitcoin successfully rebounded near $73,650 and has been maintaining its recovery. Subsequently, it reclaimed $75,000 and is trading above the 100-hour simple moving average, signaling a short-term structural improvement.

In particular, the upward breakthrough of the $75,200 resistance, where a downtrend line had formed, is considered a technically significant change. As this level acted as a key resistance in the recent downward trend, surpassing it has reopened the possibility of a resumed rally, according to the analysis.

Currently, the market's biggest concern is the $76,500 resistance level. This range is a critical price point aligned with the Fibonacci 61.8% retracement line of the recent decline, and the upward momentum could vary significantly depending on whether it is breached. If this price level is stably surpassed, Bitcoin is projected to have room to rise past $77,250 to $78,000, and further to $78,500.

Conversely, if it fails to break through this resistance level, there is a possibility of re-entering a correction phase. Short-term support is formed near $75,400, and key support areas are analyzed to be $75,000 and $74,250. A warning states that if these levels break, Bitcoin could face downward pressure again, potentially falling to $73,650 or even $72,000.

Technical indicators also show mixed signals. The Moving Average Convergence Divergence (MACD) indicates a slowdown in upward momentum, and the Relative Strength Index (RSI) is descending towards the neutral zone, suggesting a weakening of buying pressure.

The market views the current zone not as a mere rebound, but as a critical juncture to determine whether a trend reversal will occur. Whether Bitcoin breaks $76,500 is expected to be a crucial criterion for deciding the resumption of a future rally.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*