Bitcoin Price Dips Again: Market Fluctuation or Start of a Correction?

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.