Why Bitcoin’s weekly close above $70.6K signals a potential breakout

Bitcoin has shown signs that the end of its much-discussed bull market may not be as imminent as skeptics have claimed. Despite a sharp correction that saw the digital currency plummet more than 15% from its peak, the latest market moves challenge the prevailing narrative, hinting at a potential breakout.

Just a few weeks after reaching an all-time high of $73,646.68 on March 14, 2024, Bitcoin experienced a significant decline, falling to $61,661.62 on March 20. These adjustments were stark, but short-lived. The cryptocurrency’s price action over the next few days suggests a possible change in momentum.

Important weekly closes for BTC: An important factor in this potential pivot is Bitcoin’s performance over the past week. In particular, BTC ended the week on a strong note, with its price nearing its recent high of $71,000, according to data from CoinMarketCap.

Why is it important? This close is significant not only because it is close to recent all-time highs, but also because it marked a weekly close above the last all-time high resistance level of around $69,000. These developments are bullish indicators that suggest Bitcoin is poised to break out of its re-accumulation range and enter breakout territory.

The week-long trip was not smooth at all. Bitcoin has shown marked volatility characterized by rapid price fluctuations. These fluctuations were reflected in the trading platform’s volume bars, with spikes in volume coinciding with the most dramatic price movements. This volatility is a double-edged sword. This attracts traders to the market as it introduces a certain degree of risk while also opening up opportunities for profit.

Throughout the week, Bitcoin price explored a defined range. It initially fell below $66,750, but then rebounded to reach a high on March 27. This was followed by a brief decline before a recovery, a pattern that highlights the unpredictability of the current currency.

The interplay of these factors, including important weekly closes, notable volatility, the next Bitcoin halving, and the observed price range, paints a complex picture of Bitcoin market dynamics. While the correction from record highs was a major shock to markets, the subsequent recovery and current indicators suggest resilience in the face of volatility.

Read more: Bitcoin Halving in 2024: Will It Trigger the Next Bull Market?