What could trigger Bitcoin to a fresh increase? Bitcoin price started a downward movement from its all-time high of $68,500 against the US Dollar.
- A downside correction began on Bitcoin below the $68,000 and $67,000 levels.
- The price is still trading above $65,000 and the 100 hourly simple moving average.
- On the hourly chart of the BTC/USD pair, there is a major bullish trend line forming with support at $66,000
- If the $64,000 support holds, this pair could begin a fresh rally.
A downside correction of Bitcoin
The BTC/USD pair gained momentum above the $65,000 support level. The price of bitcoin exceeded $66,500 and $67,000 resistance levels. The price even surpassed the $68,000 barrier.
It traded to a new all-time high near $68,495 before there was a downside correction. The price declined below the $68,000 and the $67,800 support levels. There was a break below the 50% Fib retracement level of the prior rise from $65,200 to $68,495.
The bulls are still in control, with bitcoin trading just above $65,000 and the 100-hour simple moving average. There’s also a major bullish trend line strengthening with support at $66,000 on the hourly BTC/USD chart.
However, on the plus side, strong resistance is expected near the $67,500 mark. The first significant resistance is at $68,000. A clear break above $68,000 might provide an opportunity to resume progress. The next major resistance is located at $68,500. Any more gains may push prices up towards the $70K level.
Dips Supported in BTC?
If bitcoin fails to break the $68,000 resistance level, it could continue its decline. The $66,500 mark is a critical support on the downside. The $66,400 mark is now becoming a significant resistance for the price.
It is near the 61.8 percent Fib retracement level of the upward move from $65,200 to $68,495. The next major support is near the $65,000 mark, below which the price may fall towards USD 64,000 in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.
Major Support Levels – $66,400, followed by $66,000.
Major Resistance Levels – $67,500, $68,000 and $68,500.
