Bitcoin has recently experienced a correction in its price, descending from the $73,500 range. The cryptocurrency has slipped below the $70,000 threshold, revealing some bearish indicators.
The initial downturn began at the $73,500 mark, failing to maintain upward momentum and sparking a decline. Immediate support levels of $72,500 and $72,000 were breached soon after the drop commenced. Further exacerbating the downward trend, the price broke below a significant bullish trend line, which had provided support around the $70,000 mark on the hourly chart, according to data from Kraken.
The current trading price has plummeted, showing a decrease of over 5%, and is now positioned below $70,000. It is also trading under the 100 hourly Simple Moving Average, nearing the $68,500 support zone. This level coincides with the 61.8% Fibonacci retracement of the upward move from a swing low of $65,531 to a peak of $73,575.
Looking ahead, Bitcoin may encounter resistance if it attempts an upward correction. The first obstruction lies near the $70,000 level, with the next significant resistance at $70,500. Should the price successfully clear this mark, it could ascend higher. The subsequent key resistance lies at $71,200, and surpassing this could lead to testing the $72,500 level. An eventual rise toward the $73,500 mark is possible if momentum continues.
Conversely, if Bitcoin fails to clear the $70,000 resistance zone, the slide could persist. Immediate support on the downside is around $68,800. Below this, major support levels are positioned at $68,500 and subsequently at $67,400. Further declines may see Bitcoin testing the $66,500 support in the near term.
Technical indicators reflect this bearish sentiment, with the MACD gaining strength in bearish territory. Additionally, the RSI for BTC/USD has fallen below the 50 level, further underscoring the downward momentum.
Key support levels to watch include $68,500 and $67,400, with significant resistance levels at $70,000 and $71,200.
