Bitcoin has been experiencing a downward trend recently, with the price testing the $65,500 support zone. This level has proven to be critical for Bitcoin, as the price has struggled to maintain its position above it. As a result, Bitcoin is now consolidating and looking for potential opportunities for a fresh increase in price if it manages to clear the $66,500 resistance level.
Looking at the hourly chart of the BTC/USD pair, we can see that there is a connecting bearish trend line forming with resistance at $66,400. This trend line has been a significant obstacle for Bitcoin in its attempts to break above the resistance zone. Additionally, the price is currently trading below $68,000 and the 100 hourly Simple Moving Average, indicating a bearish sentiment in the market.
If Bitcoin is able to clear the $66,500 resistance zone, it may signal the start of a fresh increase in price. In this scenario, the price could face resistance near the $66,400 level, with the next key resistance levels at $67,650 and $68,200. A close above the $68,200 resistance level could potentially spark bullish moves and push the price towards the $70,000 resistance.
However, if Bitcoin fails to recover above the $66,500 resistance zone, it could lead to another decline in price. In this case, immediate support on the downside is near the $66,000 level, with the first major support at $65,350 and the next support at $65,000. Further losses might push the price towards the $63,500 support zone in the near term.
Analyzing the technical indicators, we can see that the Hourly MACD is losing pace in the bearish zone, indicating a potential continuation of the downward trend. The Hourly RSI for BTC/USD is also below the 50 level, further corroborating the bearish outlook for Bitcoin in the short term.
Bitcoin is currently at a critical juncture as it tests key support and resistance levels. Traders and investors will be closely watching the price action to see whether Bitcoin can break above the resistance zone and initiate a fresh uptrend, or if it will continue to struggle and face further losses in the near term.
