Bitcoin Price Correction Analysis

Bitcoin Price Correction Analysis

Bitcoin’s price failed to break above the $63,650 resistance zone and has now entered a corrective phase. The price is currently below $62,500 and the 100 hourly Simple Moving Average, indicating a bearish trend. Additionally, a bearish trend line is forming with resistance at $61,850 on the hourly chart of the BTC/USD pair from Kraken. This suggests that the pair may struggle to move higher and could revisit the $60,850 support level.

The recent high for Bitcoin was $63,798 before starting a downward correction. The price fell below $63,000, $62,500, and the 100 hourly Simple Moving Average. Moreover, there was a break below the 50% Fib retracement level of the upward move from $59,951 to $63,798. Bitcoin is now trading below $62,500 and the 100 hourly SMA, with the bulls trying to defend the $61,400 support zone and the 61.8% Fib retracement level.

If Bitcoin manages to recover, it could face resistance near $61,850 and the trend line. The key resistance levels to watch are $62,250 and $62,500, which could lead to a sustained rally towards $63,250 and $63,650. However, a failure to break above $62,250 may result in further downside movement. Immediate support levels are at $61,400, $60,850, and $60,500, with a potential drop towards $60,000.

The MACD indicator is gaining momentum in the bearish zone, signaling a potential downtrend. The RSI for BTC/USD is currently below the 50 level, indicating bearish sentiment. Major support levels to monitor are $61,400 and $60,850, while key resistance levels are at $62,250 and $62,500.

Bitcoin’s price correction reflects a struggle to break above key resistance levels, potentially leading to further downside movement. Traders should monitor support and resistance levels closely to navigate the current market conditions.

Analysis

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