Bitcoin (BTC) is retesting resistance levels as its price recovers the $71,000 mark. However, an analyst has warned that the bear market is expected to continue and that the latest bounce could be short-lived.<\/p>\n
On Tuesday, Bitcoin surged 7.5% from the Sunday lows toward the $71,000 area, retesting this key level for the second time in a week before momentarily retracing toward the $69,000 level.<\/p>\n
The cryptocurrency has been trading between the $63,000-$71,000 price range over the past month, briefly surging<\/a> above the upper boundary during last week\u2019s market bounce. However, BTC\u2019s price has failed to hold its multiple breakout attempts amid the market volatility.<\/p>\n In a Monday analysis<\/a>, market watcher Rekt Capital observed that Bitcoin is interacting with two key levels that form \u201can important overhead resistance\u201d: the 2021 and 2024 all-time highs (ATHs) at $69,000 and $71,300, respectively.<\/p>\n As the analyst explained, these levels turned into resistance in the monthly timeframe after the flagship cryptocurrency closed February at $66,970. Since then, BTC has repeatedly tested these key levels from below in the daily timeframe but has failed to reclaim them.<\/p>\n Instead, it has produced upside wicks above $69,000 and $71,300, signaling that the former ATHs are acting as rejection<\/a> levels in shorter timeframes and could become key resistance if it monthly closes below them.<\/p>\n \u201cFor Bitcoin to begin shifting this structure, price would need to Monthly Close above $69,000 by the end of March to position itself for a reclaim of the 2021 All Time High as support,\u201d the analyst asserted.<\/p>\n \u201cSimilarly, the 2024 All Time High at $71,300 would likely require multiple Monthly Closes above the level in order to properly establish a reclaim process,\u201d he added.<\/p>\n While the former ATHs risk turning into resistance, Rekt Capital noted that Bitcoin is currently finding crucial support at the 50-month Moving Average (MA), around the $64,000-$65,000 area.<\/p>\n Historically, the flagship crypto has initially reacted<\/a> from this level in bear markets, but eventually loses it as support. The recent bounce from the 50-month MA is enabling BTC to test the 2021 and 2024 ATHs as resistance \u201cfor the time being.\u201d<\/p>\n However, once the breakdown occurs, the level usually becomes a new resistance before further downside continuation follows. Now, \u201cBitcoin is effectively sandwiched between two key reactive zones,\u201d he affirmed, which could lead to short-term relief before the mid-term downside continues.<\/p>\nBTC Bounce To Be Short-Lived?<\/h2>\n