Examining Support at $68,500 and Resistance at $70,600
2024-11-04

🔹 Market Overview:
Bitcoin has managed to hold the significant support level at $68,500 after a recent struggle, closing the daily candle above this level. This stabilization creates an opportunity for the price to move towards the $70,600 resistance.

🚩 Key Levels:

Fair Value Gap (FVG) at $70,600: This area, aligned with the 50% Fibonacci retracement of the previous wave, serves as a strong resistance for Bitcoin. Upon reaching this level, there’s a high chance of a bearish reaction and price rejection.

Order Block at $71,200: Another resistance at $71,200, overlapping with the 61.8% Fibonacci level, acts as an additional resistance zone that could potentially trigger a trend reversal.

📉 Potential Trend Reversal:
If the price encounters these areas (FVG or OB), there’s a high probability of a weekly correction initiating from these points.

📈 Inverse Head and Shoulders Pattern:
An inverse head and shoulders pattern is currently forming. If the neckline is broken, it could open a short-term buying opportunity.

🔔 Conclusion:
Breaking through these key resistance levels may indicate further bullish movement; otherwise, a pullback to support and a corrective phase might follow.