Bitcoin Faces Downward Correction Following Resistance
Bitcoin saw a setback in its upward momentum after encountering resistance at the $63,650 level. This resulted in a downward correction as the price dipped below key support levels.
- The price fell below $63,000, indicating bearish sentiment among traders.
- Bears successfully pushed the price below $62,500 and the 100-hourly Simple Moving Average.
- A bearish trend line is forming with resistance at $61,850 on the hourly chart of BTC/USD.
- Bitcoin may face challenges in surpassing the $62,250 resistance mark to initiate a fresh uptrend.
Bitcoin Price Decline and Support Levels
Following the rejection at $63,650, Bitcoin’s price retracted to $63,798 and started a downward trend.
The downward movement breached the $63,000 support level, leading to further declines below $62,500 and the 100-hourly Simple Moving Average.
Additionally, the price broke the 50% Fibonacci retracement level of the recent upward swing from $59,951 to $63,798.
Despite attempts by bulls to defend the $61,400 support zone, further downside could see Bitcoin testing lower levels.
On its way up, Bitcoin may encounter resistance at $61,850 and the established trend line.
The initial hurdle for Bitcoin lies at $62,250, followed by a significant resistance at $62,500. A clear breach above $62,500 could pave the way for a sustained upwards movement.
If bullish momentum picks up, Bitcoin could target the $63,250 resistance, and potentially retest the $63,650 level in the short term.
Possible Continued Decline for Bitcoin
Failure to breach the $62,250 resistance might result in further downward pressure on Bitcoin’s price.
Immediate support is seen near $61,400, with the first major support at $60,850 and a subsequent support level emerging at $60,500.
Extended downward movement could push the price towards the $60,000 support zone in the near future.
Technical Analysis:
The hourly Moving Average Convergence Divergence (MACD) indicates increasing bearish momentum.
Bitcoin’s hourly Relative Strength Index (RSI) for BTC/USD is currently below the 50 level, showing a bearish sentiment among traders.
Key Levels to Watch:
Support: $61,400, $60,850
Resistance: $62,250, $62,500
Hot Take: Bitcoin’s Price Movement Outlook
In conclusion, Bitcoin’s recent resistance at $63,650 led to a downward correction, with the price failing to sustain its upward momentum. Traders are closely monitoring key support levels to gauge potential price movements. As Bitcoin struggles to overcome resistance barriers, the possibility of further losses remains a concern. Technical indicators suggest a bearish outlook, indicating the need for caution in trading decisions.
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