Investor Ichapters
Bitcoin has started a downward correction and has tested the $66,500 zone recently, prompting several speculations in the crypto market. This has particularly sparked interests given that it’s currently consolidating. The crypto giant may soon be targeting a fresh increase above $67,800 despite wrestling with the $70,000 resistance zone.
Spotting Majors in the Short-Term movements
The current trading of Bitcoin below $67,500 and a 100 hourly Simple moving average has invited close tracking. Speculation around an imminent reversal has accumulated with a short-term contracting triangle forming – with support at $67,100. This formation, found in the hourly chart of the BTC/USD pair, might herald a fresh increase provided there’s no close below the $66,500 zone.
Bitcoin Consolidates
The crypto leader endured a struggle as it charged towards the $70,000 level and eventually kickstarted a downside correction. This wave pushed Bitcoin below $67,500 and $68,500 levels. Notably, the price has tested the $66,500 support zone, creating an interesting low at $66,564.
However, Bitcoin’s resilience is evidenced by its ongoing consolidation of losses. A slight rise, nudging the price above $66,850, signals the start of this consolidation process. The climb went above the 23.6% Fib retracement level, calculated on the downward movement from the $69,427 high down to the poignant $66,564 low.
Resistance and Support Levels
Not surprisingly, there’s resistance brewing on the upside near the $67,100 level. Coupled with the short-term contracting triangle, this scenario sets an exciting narrative for near-term trading. Should the price overcome this hurdle, the $68,000 level (being the 50% Fib retracement level of downswing from the $69,427 high to $66,564 low) will pose as the first significant resistance. A clear move above this will likely catapult the price higher, with the next significant resistance level around $68,500.
A further rise above $68,500 might encourage more gains, potentially testing the $69,200 resistance level. Any additional gains might send the trading price towards an ambitious $70,000 resistance level.
Alternative BTC Scenario
However streamlined the path to increase seems, an alternate scenario could equally unfold – a decline. If Bitcoin fails to overcome the $67,100 resistance zone, it might experience another downward correction. On the immediate downside, the support stands near the $66,800 level.
The $66,500 level provides the first strong wall of support, followed closely by the next support zone around the $66,200 mark. A further downward slide might send the price racing into the arms of the $65,500 support in the near term.
Technical Indications Reading
The indicators paint technical outlook:
* MACD: The MACD is seemingly losing pace in the bearish zone.
* RSI: The RSI for BTC/USD is currently below the 50 level.
* Major Support Levels: These are $66,800 followed by $66,500.
* Major Resistance Levels: Watch out for the $67,100 and $68,000.
In conclusion, the ongoing consolidation drawn from the Bitcoin prices provides critical clues to the direction the crypto leader could lean towards. Only time will tell if it will break out or down. The dynamic marketplace keeps everyone on their toes.