Since July 29, the Bitcoin price has been struggling to regain the $70,000 level, which has proven to be a formidable barrier of resistance for the leading cryptocurrency. This resistance continued for the last two quarters of the year after BTC plateaued highest ever in March this year it was $73,700.

Since then, the market has seen price corrections and periods of consolidation, but recent bullish sentiment has raised hopes for a price resurgence as the year progresses.

Could $70,000 be within reach?

Market analyst Rekt Capital provided insight into Bitcoin’s current trajectory, highlighting the recent uptrend and the cryptocurrency’s potential to reclaim the $70,000 level.

It is worth noting that rect he noticed that Bitcoin broke through a downtrend channel after breaching the $65,000 level earlier this month, effectively invalidating the series of lower highs that had been set since mid-March.

This breakout marks the end of the previous downtrend. Rekt noted that Bitcoin has repeatedly failed to break above the channel resistancebut the last week’s close changed the market sentiment.

In his analysis, Rekt explains that Bitcoin is currently retesting its previous resistance point above $69,000, which suggests that a successful retest could confirm the breakout and pave the way for further growth.

Rekt further explains that the current retest is lower support floors, the Bitcoin price may drop to around $66,300, which is the highest level in the channel. This level was previously a significant barrier preventing the price from reaching higher levels.

Rekt pointed out that last week’s results showed the importance of this area as Bitcoin closed above the lower highs, setting the stage for a possible move to higher levels if said support holds.

Bitcoin faces a key challenge of resistance

If Bitcoin successfully retests this support level, the analyst expects the next target to be the high of the range around $71,500. This level represents a key challenge for Bitcoin as it would mark its first attempt to break the peak extent of re-accumulation from June.

Rekt further argues that a successful move towards an area high above these levels would show the previous resistance weakening, further increasing BTC’s prospects of reaching higher levels.

However, the question remains: How deep will the potential pullback be if Bitcoin encounters a top-level rejection? Historically, since mid-March 2024, Bitcoin has gone deeper rejectionwith declines ranging from 21% to 25% on August 5 and September 6, respectively.

Simple sums up that BTC is moving deeper into the previous resistance area at $66,000, which may turn into support soon. A successful retest of this level could precede a significant move back to the $70,000 level, strengthening the bullish outlook for Bitcoin as it moves through these critical price levels.

At the time of writing, BTC is trading at $67,350, having retraced 2% in 24 hours.

Featured image from DALL-E, chart from TradingView.com