Bitcoin Tests $68,800 Support as Downward Correction Continues

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In a stimulated flurry of digital market activity, Bitcoin, the world’s leading cryptocurrency, recently embarked upon a downward correction, slipping below the hallowed mark of $70,000. Currently, it finds itself entrenched in a critical test of the $68,800 support level, hinging on the possibility of making a fresh rally upward.

The descent of Bitcoin slid past the support zone of $70,000, witnessing a steady exchange rate a notch above $68,000 – this movement can be tracked over the 100 hourly Simple Moving Average. Adding to the complexities of the market trends, a mirroring bearish trend line gains traction, registering a potent resistance at $70,000 on the hourly chart of the BTC/USD pairing.

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Lurking in the ebb flow of these titanic structures are the interplay of resistances and supports. An important support level is the $68,800 mark, an area where the bulls of the market could start another upward increase unless there’s a closure below this.

This price retracement follows an intense struggle Bitcoin engaged in, above the level of $71,500. This culminated in the cryptocurrency reaching its zenith; a new weekly high at $71,896. Consequently, the digital coin’s value succumbed to a downward correction, declining below the $70,000 mark and testing the resilience of the 50% Fib retracement level of its upward surge from the $66,046 low point to the $71,896 high.

Further market speculations position the next key-level resistance at $70,500. Breaching this barrier might cultivate a momentum that propels the Bitcoin price higher, possibly enabling it to challenge and test the $71,200 hurdle. The bullish scenario might encourage a flurry towards the $71,800 resistance zone, paving the path for a surge towards the coveted $72,500 resistance.

However, if Bitcoin’s tenacious efforts to surpass the $70,000 resistance are thwarted, the cryptocurrency may continue its downward trajectory. An immediate support line can be drawn at the $69,000 level, with the major support emerging at $68,800. A parallel line of support emerges at $67,420 or the 76.4% Fib retracement level of its upward surge from the $66,046 swing to $71,896 high. This becomes a critical point, as additional depreciation may send the price towards the $66,000 support zone in the forthcoming term.

Technical indicators promulgate a sobering narrative, with the Hourly MACD indicating deceleration in bearish pace and the Hourly RSI (Relative Strength Index) for BTC/USD dipping below the midline of 50. Consequently, the major support levels are hedged at $69,000 and $68,800, whereas the significant resistance levels stand threatened at $70,000, $70,500, and $71,200.