Bitcoin Price Takes a Major Plunge: Examining the Unexpected Drop
Bitcoin price has experienced a significant decline after facing resistance near the $64,550 mark. The cryptocurrency has dropped below the crucial support level of $63,500 and there are indications that the downward trend may continue.
- Bitcoin initiated a fresh decline subsequent to encountering resistance at $64,550.
- Its current price is trading below $63,500 and the 100 hourly Simple Moving Average.
- An bearish trend line is evolving with resistance at $63,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- If the price falls further below the $62,700 and $62,500 support levels, it could extend its losses.
Bitcoin Price Drops Further
Bitcoin price failed to recover above the $65,000 level and struggled near $64,550 before witnessing another decline. The decline was consistent, leading to it falling below the $64,000 and $63,500 thresholds.
Subsequently, the price plunged below $63,000 and reached a low of $62,700 before consolidating its losses. On the hourly chart of the BTC/USD pair, there is a bearish trend line forming with resistance at $63,600.
Bitcoin is currently trading below $63,500 and the 100 hourly Simple Moving Average. In case of a recovery, the price could face resistance around the $63,550 level and the 23.6% Fibonacci retracement level of the downward move from the $66,444 swing high to the $62,700 low.
The first major resistance level would be $64,000, followed by $64,500 or the 50% Fibonacci retracement level of the downward move from the $66,444 swing high to the $62,700 low.
If there is a clear move above the $64,500 resistance level, it might trigger a steady increase and push the price higher. In such a scenario, the price could rise and test the $65,500 resistance level. Further gains might propel BTC towards the $66,200 resistance level in the near future.
More Potential Downside for BTC?
In the event that Bitcoin fails to surpass the $63,550 resistance zone, it is likely to continue its downward movement. The immediate support on the downside is expected near the $62,700 level.
Following the $62,700 support, the first major support level is located at $62,200. Subsequently, a new support level is forming around $62,000. Any further losses could push the price towards the $61,200 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $62,700, followed by $62,200.
Major Resistance Levels – $63,550 and $64,500.