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 ๐
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 cryptocurrencyโs bullish outlook. A decisive move above this level could pave the way for further upside potential.
Potential for More Losses in Bitcoinโs Price ๐
If Bitcoin fails to overcome the resistance at $63,500, it could signal further downside movement. The cryptocurrencyโs 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 Bitcoinโs Correction Phase ๐จ
As Bitcoin navigates through a correction phase, traders need to exercise caution and closely monitor key support and resistance levels. The cryptocurrencyโs 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.
Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding.