Bitcoin Price Struggles to Break Key Resistance Levels
The price of Bitcoin has been facing hurdles as it attempts to break through the $68,000 and $68,500 resistance levels. Despite recovering from previous losses and settling above $65,000, Bitcoin is currently consolidating its gains and struggling to make further upward progress.
Bitcoin is currently trading above the 23.6% Fibonacci retracement level of the upward wave from its swing low of $59,150 to its recent high of $68,034. Additionally, there is a key rising channel forming with resistance near $68,200 on the hourly chart of the BTC/USD pair.
The cryptocurrency is still trading above the $66,000 support level and the 100 hourly Simple Moving Average. However, it faces immediate resistance near the $67,500 level. If it manages to break through this level, the next key resistance zone is at $68,000. A successful breach of this zone could propel the price towards the $68,500 resistance level.
If Bitcoin manages to surpass the $68,500 resistance zone, it may even attempt to move above the $69,200 resistance zone. Further gains could potentially push the price towards the significant psychological level of $70,000.
Possible Downside Correction for Bitcoin
If Bitcoin fails to overcome the resistance at $68,000, it could potentially undergo another downside correction. The first line of support lies near the $66,550 level and the trend line of the rising channel mentioned earlier.
The major support level below that is at $66,000. If Bitcoin’s price closes below this support level, it may experience a more substantial pullback towards the 50% Fibonacci retracement level of the upward wave from its swing low of $59,150 to its recent high of $68,034. In this scenario, the price could potentially reach the $63,500 support zone. If the downward momentum continues, Bitcoin may even drop further towards the $62,500 support level.
Technical Indicators
Here are some key technical indicators to consider:
- Hourly MACD: The Moving Average Convergence Divergence (MACD) indicator is currently gaining pace in the bearish zone.
- Hourly RSI: The Relative Strength Index (RSI) for BTC/USD is currently near the 50 level.
Summary
The price of Bitcoin is struggling to break through the key resistance levels at $68,000 and $68,500. While it has recovered from previous losses and is trading above $65,000, Bitcoin is facing hurdles in its upward movement. It is currently consolidating gains and trading within a rising channel on the hourly chart. Bitcoin needs to surpass the immediate resistance at $67,500 in order to make further progress towards breaking the resistance zones at $68,000 and $68,500. Failure to do so may result in a downside correction towards the support levels at $66,550 and $66,000. Technical indicators suggest a bearish trend in the short term.
Hot Take: Bitcoin Struggles to Clear Key Resistance Levels
The price of Bitcoin has been facing challenges as it attempts to break through crucial resistance levels. Despite its recovery from previous losses and its current position above key support levels, Bitcoin has been unable to make significant progress towards breaking through resistance at $68,000 and $68,500. This struggle indicates potential downside risks for Bitcoin’s price movement in the near term. Traders and investors should closely monitor Bitcoin’s performance and watch for a potential breakout or a further decline in price.
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