Bitcoin is once again testing a key resistance area and traders are watching closely to see what happens next.
On the daily chart, Bitcoin recently faced rejection near the $68,300-$69,800 resistance zone. This isn’t the first time prices have suffered in this area. Sellers have been here before and now we are seeing another pause in momentum.
So what does this mean for Bitcoin’s near-term outlook?
The bullish scenario is still alive
The broader view remains slightly optimistic.
Bitcoin appears to have formed a potential “wave two” bottom around February 19th. If this structure holds, the market could now form a third wave to the upside. The third wave is usually the strongest move in a trend, but still requires confirmation through a clear breakout.
Current price action looks messy on lower time frames. A higher rise is not yet fully confirmed as there is no strong breakout yet.
withdrawal may come first
Even in bullish setups, short-term declines are not uncommon.
The typical pattern involves small corrections before continuing to higher levels. The key support zone to watch if Bitcoin pulls back is between $66,194 and $66,956. As long as the price stays above this range, the bullish structure will remain intact.
If this support holds, buyers could pull back and push Bitcoin to new local highs.
What happens when support is discontinued?
If Bitcoin falls below that support area, the outlook becomes more cautious.
In this case, the next major support area would be between $64,535 and $62,592. A decline into that area would likely imply a deeper correction before the strong rally resumes.
Breakout levels to watch out for
For bulls, the most important level is still the $68,300-$69,867 resistance area. A strong daily close above this range signals solidly upward momentum and a move towards higher highs becomes more likely.
final view
Bitcoin is at a moment of decision. A small pullback will not damage the overall bullish setup, but it is important to hold on to key support levels.
If support remains strong and resistance eventually breaks, Bitcoin could begin the next phase higher. If not, a deeper correction may occur first before the next major rally begins.
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