The latest movement in the price of Bitcoin has seen a downside correction starting from the $70,000 resistance level. This correction has resulted in Bitcoin now trading below $68,500 and the 100 hourly Simple Moving Average. A significant development was the break below a key bullish trend line with support at $68,620 on the hourly chart of the BTC/USD pair from Kraken. The potential for further losses exists if Bitcoin fails to maintain its position above the $66,000 support zone.
Bitcoin’s price had shown signs of strength as it extended gains above the $68,500 resistance zone and even spiked towards the $70,000 resistance zone. Unfortunately, the price failed to sustain near $70,000 and thus began a downside correction. Subsequently, there was a decline below the $68,500 and $68,000 support levels, as well as a break below the previously mentioned bullish trend line with support at $68,620. The price even fell below the $66,500 support zone and tested the $66,000 level, forming a low at $66,063 before consolidating losses.
Currently, Bitcoin’s price is trading below $68,500 and the 100 hourly Simple Moving Average, indicating a bearish trend. On the upside, the price could face resistance near the $67,000 level, with the first key resistance at $67,200 or the 23.6% Fib retracement level. A clear move above $67,200 could lead to further gains, with the next key resistance levels at $68,000 and $68,500. However, if Bitcoin fails to recover above the $67,200 resistance zone, another decline could be imminent. Immediate support on the downside is near $66,000, with major support levels at $65,500 and $65,000. Further losses may see the price testing the $63,500 support zone.
The recent price movements of Bitcoin have highlighted the inherent volatility of the cryptocurrency market. Despite initial gains and a bullish outlook, the failure to sustain momentum above key resistance levels has resulted in a correction and potential further losses. It is important for traders and investors to closely monitor technical indicators and key support/resistance levels to make informed decisions in this rapidly changing market environment.
