Bitcoin price recently witnessed a downside correction after facing resistance at the $62,700 zone. The cryptocurrency is currently consolidating near $58,500 and is finding it challenging to recover from the dip. This correction has led BTC to trade below the $60,000 mark and the 100 hourly Simple Moving Average (SMA).
The decline in Bitcoin’s price saw it dropping below crucial levels such as $61,500 and $60,000, pushing it into a short-term bearish zone. Notably, there was a break below a significant bullish trend line with support at $61,000 on the hourly chart of the BTC/USD pair. Furthermore, the pair breached the 50% Fib retracement level of the upward move from the $54,556 swing low to the $62,700 high, indicating bearish momentum.
Currently, Bitcoin price is hovering below $60,000 and continues to find support near the $58,500 zone. The stability above the 61.8% Fib retracement level of the recent uptrend suggests some resilience in the market. However, the immediate resistance lies around the $59,500 level, followed by the key barrier at $60,000. A successful break above this resistance could pave the way for further upside potential towards $61,200 and $62,500 levels.
In the event of a clear breach above the $62,500 resistance, Bitcoin’s price may experience bullish movements with a target near the $65,000 resistance. On the flip side, failure to surpass the $60,000 hurdle could result in additional downside pressure. The immediate support levels to watch include $58,500, $57,650, and $57,250, with further potential downside towards $55,500 or even $55,000 in the near future.
Analyzing the technical indicators, the hourly MACD is currently showing signs of acceleration in the bearish territory, reflecting the prevailing negative sentiment. Similarly, the hourly RSI for BTC/USD has dipped below the 50 level, indicating a weakening bullish momentum. As traders monitor these key levels and indicators, the price action of Bitcoin remains crucial in determining the next major trend in the cryptocurrency market.
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