Bitcoin Price Struggles to Break Resistance
The price of Bitcoin made an attempt to recover above the $65,000 resistance zone but faced strong resistance near $68,000. Although it climbed above the $66,000 and $67,000 levels, the bears quickly took control and pushed the price lower.
The high point was reached at $68,137 before the price started moving downwards. It broke below the $66,000 support level and declined further. The 23.6% Fibonacci retracement level of the recovery wave from the swing low of $60,778 to the high of $68,137 was also breached.
Currently, Bitcoin is trading below $66,000 and the 100 hourly Simple Moving Average (SMA). However, the bulls are trying to defend the 50% Fibonacci retracement level at $64,500.
Short-Term Declining Channel or Bullish Flag?
A short-term declining channel or a bullish flag is forming on the hourly chart of the BTC/USD pair. This indicates that there is potential for an upward movement in price if certain resistances are broken.
- The immediate resistance is near the $66,000 level.
- The short-term declining channel has resistance at around $66,200.
- If there is a clear move above the $67,000 resistance zone, it could pave the way for further gains.
In such a scenario, Bitcoin may even break through the key resistance level at $68,000 and potentially target $70,000 as its next major resistance.
Source: BTCUSD on TradingView.com
Possible Downward Movement
If Bitcoin fails to overcome the resistance at $66,000, it may experience further downward movement. The immediate support on the downside is near the $64,500 level.
- The first major support is at $63,500.
- The next support level is located at $62,000.
- A close below $62,000 could trigger a drop towards $61,200.
If the selling pressure continues, the price might even reach the $60,500 support zone in the near future.
Technical Indicators
The hourly MACD (Moving Average Convergence Divergence) is currently showing bearish momentum.
The hourly RSI (Relative Strength Index) for BTC/USD has dropped below the 60 level.
Summary
The price of Bitcoin attempted to recover but faced strong resistance near $68,000. It is now trading below $66,000 and the 100 hourly SMA. However, if it manages to break above the resistance levels at $66,000 and $67,000, there is potential for further upward movement. On the other hand, if it fails to overcome these resistances, there could be more losses with support levels at $64,500 and $63,500. Traders should closely monitor these key levels to determine future market direction.
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