Bitcoin Price Slumps Within Range, Can Bulls Safeguard This Support Level?
Bitcoin’s price is currently experiencing a downward movement after facing resistance at the $73,000 mark. In order to initiate a new upward trend, BTC must maintain support above the $67,000 level.
The correction in Bitcoin’s price has caused it to dip below $71,000 and the 100 hourly Simple Moving Average. Additionally, a key bullish trend line with support at $72,820 was broken on the BTC/USD hourly chart provided by Kraken. As a result, the price may retest the support zone at $67,000 in the near future.
Bitcoin made an unsuccessful attempt to surpass the $72,500 level, leading to a downward reaction. This drop resulted in the breach of the $72,000 and $71,500 levels. The bearish trend line break below support at $72,820 further confirmed the bearish sentiment. BTC even declined below the $70,000 level, reaching a low of around $68,403.
Currently, Bitcoin is trading below $71,000 and the 100 hourly Simple Moving Average. The immediate resistance lies around the $70,000 level, which corresponds to the 50% Fibonacci retracement level of the downward move from the $72,043 swing high to the $68,403 low.
The next significant resistance level could be around $70,500 or the 61.8% Fibonacci retracement level. A break above this level might lead to the price heading towards the $72,000 resistance zone. Subsequently, a clear move above this zone could even propel Bitcoin’s price towards the $73,000 resistance level, potentially targeting the $75,000 level.
However, if Bitcoin fails to surpass the $70,500 resistance zone, it may continue to decline. The immediate support on the downside is near $68,500, with the first major support at $67,500. Ultimately, the main support level sits at $67,000. A close below this level may trigger a significant pullback towards the $65,500 level, and further losses could send the price towards the $65,000 support zone.
Technical indicators suggest a bearish momentum, with the MACD gaining speed in the bearish zone and the hourly RSI dropping below the 50 level.
Please note that this article is for educational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries risks, and it is essential to conduct your own research before making any investment decisions.