Bitcoin Price Corrects Recent Gains: Deeper Decline Coming?

Bitcoin price extended its rise above $66,000. BTC is now correcting gains below $65,500 and could continue declining towards $64,000.

  • Bitcoin is correcting gains from the $66,500 area.
  • The price is trading below $65,250 and the 100 hourly simple moving average.
  • There was a break below a short-term uptrend line with support at $65,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another rise if it holds above the $64,000 support zone.

Bitcoin price begins downward correction

bitcoin price remained supported near the $63,250 level. BTC extended its rise above the $65,500 resistance zone. It even surpassed the $66,000 level.

A high was formed at $66,452 and the price is now correcting the gains. There was a drop below the $66,000 level. The price fell below the 23.6% Fibonacci retracement level of the upward move from the low of $62,672 to the high of $66,452.

There was a break below a short-term uptrend line with support at $65,750 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $65,500 and the 100 hour simple moving average.

The bulls are now trying to protect the $64,500 zone. If there is a fresh rise, the price could face resistance near the $65,250 level. The first key resistance is near the $65,500 level. A clear move above the $65,500 resistance could push the price higher.

The next key resistance could be $66,500. A close above the $66,500 resistance could lead to further upside. In the given case, the price could rise and test the resistance level of $68,000.

More losses in BTC?

If Bitcoin fails to break above the $65,500 resistance zone, it could continue to decline. Immediate support on the downside is near the $64,200 level and the 61.8% Fibonacci retracement level of the upward move from the low of $62,672 to the high of $66,452.

The first major support is near the $64,000 level. The next support is now near the $63,500 area. Any further losses could send the price towards the $62,650 support in the near term.

Technical indicators:

MACD Hourly: The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Main support levels: $64,200, followed by $64,000.

Main resistance levels: $65,250 and $65,500.

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