Bitcoin Price Slides Again: Is this just a Market Fluctuation or the Beginning of a Correction?
Bitcoin price has once again dipped below the support level of $68,800, causing concern over whether this is just a temporary market fluctuation or the start of a longer correction.
- Bitcoin has extended its decline and is currently trading below $69,000 and the 100 hourly Simple moving average.
- There is a significant barrier at the $70,000 resistance zone that the price is struggling to overcome.
- On the hourly chart of the BTC/USD pair, a bearish trend line has formed with resistance at $69,200.
- Unless the bulls can push the price back above $70,000, further downward movement is expected.
Bitcoin Price Breaks Support
The drop below the $70,000 support zone initiated a correction in Bitcoin’s price, with bears successfully pushing it below the crucial $68,800 support level. This triggered a series of bearish moves, leading to a dip in price to around $66,250.
The price has since stabilized and is currently in a consolidation phase. It briefly climbed above the $67,250 level, surpassing the 23.6% Fibonacci retracement level of the downward movement from the $70,500 swing high to the $66,250 low.
However, the bears remain active near the $68,350 level and the 50% Fibonacci retracement level. Additionally, Bitcoin is trading below $69,000 and the 100 hourly Simple moving average, indicating a bearish sentiment.
If the price sees a fresh increase, it would likely encounter resistance near the $68,350 level, followed by the key resistance at $68,800. The hourly chart also shows the presence of a significant bearish trend line with resistance at $69,200.
The next major resistance lies at $70,000. If Bitcoin manages to break above this level, it may signal a potential upward movement, with the price testing the resistance at $70,500.
Should the bulls succeed in pushing the price even higher, a move towards the $71,200 resistance zone could be possible, potentially leading to further gains up to the $71,800 resistance level.
More Losses in BTC?
Failure to break above the $69,800 resistance zone may result in further downward movement. The immediate support level on the downside is around $67,250, followed by the first major support at $66,800.
A significant support level is now forming near $66,250, and if the price continues to fall, it may reach the $65,000 support zone in the near future.
Technical indicators:
Hourly MACD – The MACD is currently indicating a bearish trend.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is below the 50 level, signaling bearish momentum.
Major Support Levels – $67,250, followed by $66,250.
Major Resistance Levels – $68,350, $68,800, and $70,000.