Bitcoin Faces Downside Correction, Eyeing $60,000 Support Zone
Bitcoin has experienced a fresh downside correction, breaching key support levels. The leading cryptocurrency started trading below $63,500 and is currently struggling to stay above the crucial $62,000 mark. As the price battles to maintain its bullish momentum, traders are closely monitoring the next potential support areas and resistance levels.
Bitcoin Price Rejection at $65,500 Level 📉
After surpassing the $64,500 mark, Bitcoin faced significant resistance near $65,500, leading to a sharp pullback in its price. The cryptocurrency failed to sustain its upward momentum and is now trading below the $63,350 level and the 100 hourly Simple Moving Average (SMA).
- A high was established at $65,550, signaling a strong rejection at the $65,500 resistance zone.
- The price decline led to a breach of the 23.6% Fibonacci retracement level of its previous upward wave.
- A major bullish trend line with support at $63,700 was broken on the hourly chart of the BTC/USD pair.
Bitcoin is currently facing immediate resistance near $63,350, with further major resistance levels at $64,000 and $65,000. However, the primary hurdle remains at $65,500, which is crucial for the cryptocurrency’s bullish outlook. A decisive move above this level could pave the way for further upside potential.
Potential for More Losses in Bitcoin’s Price 📉
If Bitcoin fails to overcome the resistance at $63,500, it could signal further downside movement. The cryptocurrency’s immediate support lies at the $62,000 level, with a significant support area around $60,000 in focus. A breach below $61,000 could trigger a more substantial downward correction towards $58,000.
Key technical indicators are suggesting a bearish scenario for Bitcoin:
- The Hourly Moving Average Convergence Divergence (MACD) is showing increasing bearish momentum.
- The Hourly Relative Strength Index (RSI) for BTC/USD has dropped below the 50 level, indicating a bearish sentiment among traders.
Traders are closely monitoring the major support levels at $62,000 and $60,000, while key resistance levels stand at $63,500, $64,000, and $65,500. The cryptocurrency market is experiencing heightened volatility, and caution is advised when trading in such conditions.
Sources: BTCUSD on TradingView.com
Hot Take: Stay Cautious Amid Bitcoin’s Correction Phase 🚨
As Bitcoin navigates through a correction phase, traders need to exercise caution and closely monitor key support and resistance levels. The cryptocurrency’s ability to hold above the $60,000 support zone will be pivotal in determining its next price trajectory. Stay informed and stay alert in these volatile market conditions.
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