Bitcoin continued trading in a local uptrend ahead of the trading session, extending the recovery that began earlier this week.
Market analysts say that the current move appears to be developing within a classic ABC corrective structure, a pattern often used in Elliott Wave analysis to identify short-term price movements.
The recent upward move is believed to represent the B wave followed by a push into wave C, meaning that Bitcoin could soon approach an important resistance zone.
Resistance Levels in Focus
The next major resistance levels are located around $70,767 and $72,200.
These levels have been closely watched by traders over the past few days. A strong breakout above this zone could signal a more bullish scenario for Bitcoin in the short term.
However, analysts caution that if Bitcoin remains below the $72,200 pivot, the possibility of another downward wave remains.
If the resistance holds, Bitcoin could experience a short-term pullback before attempting another move higher.
Support Zone Remains Strong
Despite recent price fluctuations, Bitcoin continues to trade within a sideways range that has been forming since early February.
The main support area sits within an orange support zone that has repeatedly held during recent corrections. This region has acted as the market’s most stable level for several weeks.
Technical analysts often identify these support zones using Fibonacci retracement levels, which measure how much of a previous move the market retraces during a correction.
Fibonacci levels often used include 23.6%, 38.2%, 50%, 61.8%, 78.6%, and 88.7% retracement levels.
In the current structure, a deeper correction could potentially test levels near $61,540, which aligns with the 88.7% retracement zone in the broader pattern.
Breakout or Rejection?
For now, Bitcoin’s short-term outlook remains balanced.
A decisive move above the $72K resistance zone could signal the start of a stronger bullish phase. On the other hand, a rejection from this level may trigger another dip toward the established support range.
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