Bitcoin has recently experienced a significant movement in its price, gaining momentum above the $63,500 resistance level. The cryptocurrency managed to surpass the $63,800 and $64,200 barriers, propelling it into a more favorable trading zone. The bullish trend was further evidenced as Bitcoin priced above the $64,500 threshold, reaching a peak at $64,777. However, the price has since started to correct its gains.
The correction saw Bitcoin dip below crucial support levels, including the $64,000 and $63,500 marks. This decline also took the cryptocurrency under the 61.8% Fibonacci retracement level of the previous upward movement, which spanned from a low of $62,440 to a high of $64,777.
Currently, Bitcoin is trading below $63,500 and the 100-hour simple moving average. It is also beneath the 76.4% Fibonacci retracement level from the same upward trajectory. This indicates that if Bitcoin attempts another increase, it may encounter resistance around the $63,250 level. Notably, there is a bearish trend line forming with resistance near $63,240 on the hourly chart of the BTC/USD pair.
The initial significant resistance is anticipated around the $63,500 level. Should Bitcoin manage to surpass this resistance, it might rise further. The next key resistance would then be approximately $64,200. A successful closure above this level could potentially ignite additional upward movements, possibly testing the $64,750 resistance.
On the flip side, if Bitcoin fails to break through the $63,500 resistance zone, it may continue its downward trajectory. Immediate support on the downside is projected near the $62,750 level. The main support level is identified at $62,450, with another critical support zone around $62,000. A failure to hold these levels could drive the price downward towards a support of $61,200 in the near term.
Technical indicators reflect this current market sentiment. The hourly MACD (Moving Average Convergence Divergence) is gaining pace in the bearish zone, indicating a bearish momentum. Additionally, the hourly RSI (Relative Strength Index) for BTC/USD is positioned below the 50 level.
Key support levels to watch are $62,750 followed by $62,450, while major resistance levels are positioned at $63,500 and $64,200.
