Bitcoin Bears Tighten Grip: Further Declines on the Horizon
The bears have regained control over Bitcoin as the cryptocurrency struggles to recover above the $68,000 resistance zone. BTC is now on a downward trajectory and there is a possibility that it might even drop below the $66,000 support zone.
Bitcoin recently faced rejection at the $68,200 resistance zone, triggering another decline. The price is currently trading below $68,000 and the 100 hourly Simple Moving Average, indicating a bearish sentiment in the market. On the hourly chart of the BTC/USD pair, a bearish trend line can be observed, with resistance forming at $67,150.
While there is a possibility of a recovery, any upside movement is expected to be limited above the $68,000 level. Bitcoin has failed to climb above the $68,500 resistance zone, extending its losses below $67,200. The price even tested the $66,250 zone, reaching a low of $66,244.
Currently, Bitcoin is consolidating losses below the 23.6% Fibonacci retracement level of the downward wave from the $69,970 swing high to the $66,244 low. The cryptocurrency is trading below $68,000 and the 100 hourly Simple Moving Average, indicating a bearish trend.
While the price is forming a short-term base above the $66,250 zone, there are multiple hurdles for the bulls. The $67,150 level presents a significant resistance, along with a connected bearish trend line on the hourly chart. If Bitcoin manages to break above $67,150, the next major resistance lies at $68,000 and the 50% Fibonacci retracement level.
A clear move above the $68,500 resistance could potentially send the price higher, with possible targets at $69,200 and even $70,000 in the near future. However, if Bitcoin fails to surpass the $67,150 resistance zone, it is likely to resume its decline.
Immediate support on the downside is expected near the $66,250 level, followed by the major support at $66,000. Furthermore, a next support level is forming around $65,000, and any further losses could push the price towards the $63,500 support zone.
Technical indicators are signaling a bearish sentiment, with the hourly MACD losing pace in the bearish zone and the hourly RSI falling below the 50 level.
In summary, Bitcoin is currently facing resistance and struggling to recover. The bears have gained control, and further declines could be on the horizon. Traders should watch key support and resistance levels for potential market movements.