Key Takeaways:
– Bitcoin price plunges below $63,500, stirring new concerns in the market.
– Bitcoin is currently consolidating above the $60,000 mark.
– Bitcoin has dipped over 5% from an initial $65,000 resistance, facing multiple hurdles on the upward path.
– A significant aid for a price increase could lie within the $60,500 support zone.
– An increase beyond $62,800 resistance further may send the price soaring further.
– A failure to rise beyond $62,800 could heighten the downward trend.
Understanding the Downfall
Continuing its volatile trend, Bitcoin took a major hit, surging downwards from what seemed to be a promising $65,000 resistance. Breaking past the support levels at $64,000 and $63,500, Bitcoin entered into a short-term bearish zone leading to numerous apprehensions among investors. The dip went beyond $61,500, with a low touching $60,281. As of now, Bitcoin is seen consolidating the losses and currently trading around the 23.6% Fibonacci retracement level of the decline from the $66,055 high to the $60,281 low.
Trading Obstacles Ahead
The current Bitcoin trading price stands below $62,500 and is significantly lower than the 100 hourly Simple moving average. Projected barriers may arise near the $61,650 level in case of a potential increase. The $62,500 level will serve as the first prominent resistance.
However, a crucial factor to consider is the connecting bearish trend line currently marking the resistance at $62,800 on Bitcoin’s hourly chart. A definitive surpassing of this resistance may jumpstart an upward trajectory for Bitcoin. Following this, the subsequent key resistance could be around $63,200, which alarmingly is quite close to the 50% Fibonacci retracement level of the plunging move from $66,055 high to $60,281 low.
Potential Upsides Vs Downfalls
A closure beyond $63,200 resistance could light a beacon for further upsides. In this case, the price may advance towards testing the $64,000 resistance level. Any additional gains might even propel Bitcoin towards the previous $65,000 resistance.
Conversely, should Bitcoin fail to overcome the $62,800 resistance zone, there might be increased uncertainty and possibility of a continuing downfall. The nearest support on the downward side lies close to the $61,000 level. This is followed by a substantial support near the $60,500 level.
In the event of further losses, Bitcoin might experience a descent towards the $60,000 zone. If losses persist, the value of Bitcoin could plummet all the way down to the $58,500 support in imminent future.
Technical Intricacies
Various technical indicators are showing a worrying trend. The MACD (Moving Average Convergence Divergence) on the hourly chart is gradually losing speed in the bearish zone. The RSI (Relative Strength Index) for Bitcoin is currently under 50. The primary support levels to keep an eye on are $60,500 and then $60,000. As for resistance, Bitcoin traders should be aware of the impending bumps at $61,650 followed by $62,800.
While it might seem like Bitcoin price is on a downward trail, it’s crucial to remember that Bitcoin is notoriously known for its volatility. Therefore, despite the challenges, an upward rebound from the $60,000 mark remains a plausible possibility. However, careful monitoring of key resistance and support levels is crucial to understand and predict the currency’s future trends.