Key Takeaways:
– Bitcoin price has recently corrected gains above $66,000, now trading below $65,500.
– Technical indicators suggest a potential continuation of this downward trend.
– Major support levels exist around $64,200 and $64,000.
– The $64,000 support holds significant importance for the future price path.
Bitcoin Price Correcting Gains from $66,500 Zone
Following a successful surge above $66,000, Bitcoin price is now in correction mode. A significant gain was seen, with Bitcoin reaching as high as $66,452. However, a recent pullback has seen the leading cryptocurrency drop below $66,000.
This price dip is more than a minor adjustment. It has broken through the 23.6% Fib retracement level of the previous upswing from a $62,672 low to a $66,452 high. This bears significant implications for future price performance.
Breaking a Short-Term Bullish Trendline
This correction represents a break below a bullish trendline that had been supporting Bitcoin at $65,750. The pattern interruption, along with Bitcoin trading below $65,500 and its 100-hourly Simple Moving Average, suggests the potential for more declines.
Despite this, optimism is still very much present in the market. Bulls are working hard to defend the $64,500 zone. If they’re successful, we might see another upswing.
Resistance on the Upside
If there is a fresh increase, Bitcoin could face some resistance near the $65,250 level. The first significant resistance comes in at around $65,500. If the price can convincingly clear this hurdle, we could see it push higher.
The next significant resistance is at $66,500. If Bitcoin manages to close above this point, it could catalyze further upward momentum, potentially testing the $68,000 resistance level.
Is a Deeper Bitcoin Price Dip on the Way?
However, if Bitcoin fails to recover above $65,500, the bearish trend could continue. Initial support on the downside lies around $64,200 and the 61.8% Fib retracement level of the previous increase.
A crucial support exists near the $64,000 zone. If the price fails to stay above this level, it could further descend towards the $63,500 and even $62,650 zones.
Technical Indicators Gaining Pace in the Bearish Zone
Bitcoin’s MACD on the hourly chart indicates a bearish momentum increasing while the RSI is now below the 50-point level, suggesting more sellers in the market than buyers. These technical indicators suggest that a deeper downside correction may be in the cards.
Bitcoin’s future price direction is largely dependent on how it reacts to the current major support and resistance levels. If it manages to surmount resistance at $65,500 and subsequently, $66,500, an upward trend is still plausible. However, a continued struggle to break these points may spell more losses in the immediate term.
Investors and traders are now closely watching Bitcoin’s price action, ready for the numerous possibilities this market correction may open up. Despite the current bearish outlook, it’s worth noting that these are short-term movements in a largely bullish trend, reinforcing the volatile nature of cryptocurrencies.