Bitcoin price recently struggled near the $70,000 resistance level and started a downside correction. Currently, BTC is trading below $68,500 and the 100 hourly Simple Moving Average, indicating a bearish trend. There was also a break below a key bullish trend line with support at $68,620 on the hourly chart of the BTC/USD pair from Kraken. If the price fails to stay above the $66,000 support zone, it may extend its losses further.
The price of Bitcoin initially surged above the $68,500 resistance zone and even reached close to the $70,000 level before facing a correction. This correction led to a move below both the $68,500 and $68,000 support levels. The hourly chart of the BTC/USD pair shows a break below the key bullish trend line, signaling a bearish trend. The pair also declined below the $66,500 support zone and tested the $66,000 level before consolidating losses.
In terms of potential resistance levels, Bitcoin may face hurdles near the $67,000 level in the near term. The first key resistance is around $67,200, which is also the 23.6% Fib retracement level of the downward move from the $69,985 swing high to the $66,036 low. If the price manages to break above this resistance, it could pave the way for further gains towards the $68,000 level or the 50% Fib retracement level. However, a clear move above the $68,500 resistance is crucial for a bullish continuation towards the $70,000 level.
On the flip side, if Bitcoin fails to recover above the $67,200 resistance zone, it may face renewed selling pressure. Immediate support is seen near the $66,000 level, followed by the $65,500 support. Further downside momentum could lead the price towards the $65,000 level, with the possibility of reaching the $63,500 support zone in the short term. Technical indicators suggest that the MACD is gaining pace in the bearish zone, while the RSI for BTC/USD is currently below the 50 level.
In conclusion, Bitcoin’s recent correction from the $70,000 resistance level has led to a bearish trend below key support levels. The price remains below the 100 hourly Simple Moving Average and faces resistance near $67,000 and $68,000. A failure to stay above the $66,000 support zone could result in further losses towards $65,000 and potentially $63,500. Traders should monitor key resistance and support levels closely for potential trading opportunities based on market conditions and technical indicators.
