The Bitcoin price recently started another decline from the $70,000 resistance zone, leading to a decrease of over 5%. This downward movement resulted in the price dropping below the $67,500 support level. The bearish momentum is gaining strength from the inability to break above the $70,000 resistance zone. Currently, the price is trading below $68,500 and the 100 hourly Simple Moving Average.
A significant bearish trend line is forming with resistance near $68,400 on the hourly chart of the BTC/USD pair. The pair might extend its decline towards the $64,000 support zone in the near future. The struggle to settle above $70,000 and the subsequent reaction to the downside after breaking the $69,200 support level resulted in a sharp decline below $68,500. The price even fell below $67,000 and tested the $66,000 support zone with a bearish angle.
Recovery Attempt
After reaching a low near $65,992, the price is now attempting a recovery wave. There was a slight increase above the $66,800 level and the price even surpassed the 23.6% Fib retracement level of the downward move from $69,884 to $65,992. However, Bitcoin is still trading below $68,500 and the 100 hourly Simple Moving Average. The presence of a key bearish trend line with resistance near $68,400 on the hourly chart indicates further challenges for the price.
Immediate resistance is seen near the $68,000 level along with the 50% Fib retracement level of the downward move from $69,884 to $65,992. The first major resistance level is expected to be around $68,500 along with the trend line. In case of a clear move above the $68,500 resistance zone, the price could potentially initiate a fresh increase towards the $70,000 resistance zone. However, if the price fails to rise above the $68,000 resistance level, it might continue its downward movement. Immediate support lies near $66,000, followed by the major support levels at $65,000 and $64,000.
Technical Indicators
The hourly MACD is currently gaining momentum in the bearish zone, indicating a further downside potential. The Hourly RSI for BTC/USD is below the 50 level, further supporting the bearish sentiment.
While the Bitcoin price is struggling to break above key resistance levels, it is facing strong bearish pressure leading to a decline towards crucial support levels. Investors and traders should closely monitor the price action, support, and resistance levels, along with technical indicators before making any investment decisions. The cryptocurrency market remains highly volatile, and caution is advised when trading or investing in digital assets. Conducting thorough research and using information at your own risk is imperative in such a dynamic financial landscape.
