Market restart complete, relief over bullish sentiment fades; next target: $70,000

Bitcoin is once again at a crucial support level and is facing a critical test that could determine its near-term future. Analysts are closely watching Bitcoin repeat familiar patterns, suggesting the possibility of a major move.

Crypto World analyst Josh said that Bitcoin is in a bearish trend, as indicated by the Super Trend indicator on the 4-day chart. This trend is characterized by lower highs and lower lows, indicating a continuation of downward pressure. However, within this bearish trend, Bitcoin has found temporary relief and bounced off a significant support level.

Last week, Bitcoin experienced a “bullish relief” – a temporary rebound in price after a period of oversold conditions. This bounce is not uncommon in bearish trends, which see brief upward or sideways price movements when the market resets.

Important support and resistance levels

Currently, Bitcoin is fluctuating around the $60,000-$61,000 support zone, a critical area that has served as both resistance and support in the past. A confirmed breakout above this level, as seen recently, is a positive sign, but the market remains cautious.

To reverse the overall trend back to an uptrend, Bitcoin needs to break through several resistance levels, with the first significant barrier being at $63,000. Moreover, the $67,000-$68,300 area is another key resistance zone that could determine the direction of Bitcoin price in the near term.

Comparison of current trends with past market behavior

Interestingly, the current price action mirrors patterns seen during the March 2020 crash, when Bitcoin formed a double bottom before rising again. This time, Bitcoin has followed a similar path, with a sharp decline followed by a slight recovery. The key difference now is whether this relief can turn into a sustained recovery or whether the bearish trend will resume.