Bitcoin price faced a strong resistance level near $70,000 and initiated a downward correction in its value. The correction phase began after failing to sustain above the $68,500 mark and the critical 100 hourly Simple Moving Average. This corrective move raises concerns about the future price action of Bitcoin.
A significant development during the correction was the breach of a key bullish trend line with support at $68,620 on the hourly chart of BTC/USD. This break below the trend line signified a shift in momentum towards the downside, potentially pushing the price lower if it fails to hold above the $66,000 support zone.
Following the downward move, Bitcoin price found a temporary foothold at the $66,000 level with a low of $66,063 before consolidating its losses. The immediate support on the downside is at $65,500, and further support is seen near $65,000. Any sustained losses could lead the price towards the $63,500 support zone in the near term, indicating a bearish sentiment in the market.
On the upside, Bitcoin 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 this level might indicate a potential upward momentum towards the $68,000 resistance, followed by a major hurdle at $68,500. A break above $68,500 resistance could trigger bullish moves, potentially testing the $70,000 resistance level.
The Hourly MACD for Bitcoin is gaining momentum in the bearish zone, signaling a possible continuation of the correction phase. The Hourly RSI for BTC/USD is currently below the 50 level, indicating a bearish sentiment in the market. Traders and investors should closely monitor these technical indicators to gauge the market sentiment and potential price movements.
The recent correction in Bitcoin price from the $70,000 resistance level highlights the vulnerability of the cryptocurrency to downside pressure. Traders should exercise caution and closely monitor key support and resistance levels to make informed trading decisions in the volatile cryptocurrency market.
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