Bitcoin’s price initiated a fresh downtrend after encountering resistance near the $70,000 zone. Currently, BTC has declined by over 5%, breaching the $67,500 support level.
Bearish momentum is strengthening for Bitcoin from the $70,000 resistance area. The price is now trading below $68,500 and the 100-hourly Simple Moving Average. On the hourly chart of the BTC/USD pair (sourced from Kraken), a significant bearish trend line is forming, presenting resistance around $68,400.
Given these developments, it’s possible that the pair may continue its descent towards the $64,000 support region in the near future.
Bitcoin’s Price Dips into Negative Territory
Bitcoin struggled to maintain ground above the $70,000 resistance zone and subsequently experienced a downward reaction upon breaching the $69,200 support area. This led to a significant drop below the $68,500 level, with the price even falling below $67,000 and testing the $66,000 mark with a bearish tilt. A low was established around $65,992, followed by a tentative recovery attempt that saw the price surpassing the $66,800 level.
While the price managed to climb above the 23.6% Fibonacci retracement level of the recent downward movement from the $69,884 swing high to the $65,992 low, it still remains below $68,500 and the 100-hourly Simple Moving Average. Furthermore, a crucial bearish trend line is taking shape with resistance near $68,400 on the hourly BTC/USD chart.
Immediate resistance is anticipated around the $68,000 level, in proximity to the 50% Fibonacci retracement level of the aforementioned downward move. The primary hurdle lies at $68,500 along with the trend line. A clear breakthrough above the $68,500 resistance zone could potentially trigger a renewed upward momentum.
Under such circumstances, the price might ascend towards the $70,000 resistance zone in the short term. Subsequently, the next significant resistance level lies near the $71,500 zone.
Could BTC Experience Further Declines?
Should Bitcoin fail to surpass the $68,000 resistance zone, a continuation of downward movement could be expected. Immediate support on the downside is anticipated near the $66,000 level.
The initial major support level stands at $65,000, followed by $64,000. A close below $64,000 might signal a decline towards the $62,500 level. Further losses could potentially drive the price towards the $60,500 support zone in the near term.
As for technical indicators:
- The hourly MACD indicates an acceleration in the bearish zone.
- The hourly RSI for BTC/USD is currently below the 50 level.
Key support levels include $66,000, followed by $65,000, while major resistance levels stand at $68,000, $68,500, and $70,000.