Has the Bitcoin price downside thrust come to an end, or are the bears not finished yet?
Bitcoin price experienced a significant decline as tensions between Israel and Iran escalated. It dipped towards the $60,500 support level but is now making an attempt at a recovery wave.
Currently, Bitcoin is trading below the $65,500 resistance level and the 100 hourly Simple Moving Average. On the hourly chart of the BTC/USD pair, a key rising channel is forming with resistance at $65,850. If the price manages to clear the $66,000 resistance zone, there is a possibility of gaining bullish momentum.
However, the recovery faces hurdles. Bitcoin suffered a major decline below the $70,000 level due to the aforementioned geopolitical tensions. It experienced a sharp drop below $66,000 and $65,000. The price has now dipped over 10% and tested the $60,500 support level.
Currently, Bitcoin is attempting a recovery. It has climbed above the $62,500 and $63,000 levels and surpassed the 23.6% Fib retracement level of the downward move from the $71,200 swing high to the $60,495 low.
Presently, the price is trading below $67,000 and the 100 hourly Simple Moving Average. The immediate resistance lies near $65,800, followed by the key rising channel resistance at $65,850. Additionally, the 50% Fib retracement level of the downward move from the $71,200 swing high to the $60,495 low is also close.
If Bitcoin manages to clear the resistance at $66,000 and continues to move up, the price could rise towards $70,000. The next major resistance lies near the $71,200 zone, and further gains might lead Bitcoin towards the $72,500 resistance zone in the near term.
On the other hand, if the price fails to rise above the $66,850 resistance zone, there is a possibility of another decline. The immediate support on the downside is near $64,500, followed by the major support level at $63,000. If the price falls below $63,000, it may drop towards the $62,000 level, and any additional losses could lead it back to the $60,500 support zone.
Looking at the technical indicators, the hourly MACD is losing pace in the bullish zone, while the hourly RSI (Relative Strength Index) is above the 50 level.
In summary, the Bitcoin price recovery is facing obstacles, and it remains uncertain whether the downside thrust is over or if the bears have more to offer. Traders should closely monitor the key resistance and support levels to gauge future price action.