Bitcoin has been facing significant challenges as it attempts to recover above the crucial $65,500 resistance level. The cryptocurrency is once again experiencing downward pressure, with the potential for further losses below the $63,000 mark.
Failed Recovery Attempt
After hitting a support level of $62,750, Bitcoin managed to initiate a recovery wave, surpassing the $64,000 and $64,500 resistance levels. However, the bullish momentum was short-lived as the price failed to breach the $65,500 resistance zone. Subsequently, a high was reached at $65,300 before the price started to decline once again.
Technical analysis reveals a bearish trend line forming with resistance at $64,500 on the hourly chart of the BTC/USD pair. As a result, Bitcoin is now trading below $64,500 and the 100 hourly Simple Moving Average, signaling additional downside potential.
If Bitcoin fails to secure a daily close above the critical $63,000 support zone, there is a likelihood of further downside movements. Immediate support on the downside is expected near the $64,000 level, followed by the $63,750 level or the 61.8% Fibonacci retracement level of the recent recovery wave.
Resistance Levels to Watch
On the upside, Bitcoin must overcome the $64,500 resistance level and the bearish trend line to reach higher price targets. The first major resistance lies at $65,350, followed by the crucial $65,500 level. A decisive move above $65,500 could pave the way for further gains, with the next resistance point at $66,200.
Technical Indicators
Key technical indicators are indicating a bearish outlook for Bitcoin in the short term. The hourly MACD is gaining momentum in the bearish zone, while the hourly RSI for BTC/USD has dipped below the 50 level. These signals suggest that the bears are in control of the market at present.
It is important to note that the information provided in this article is for educational purposes only and should not be construed as financial advice. Investing in cryptocurrencies carries inherent risks, and it is crucial to conduct thorough research and analysis before making any investment decisions. Always use caution and trade responsibly.
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