Bitcoin, the leading crypto asset, started a correction and fell as low as $59,824. While it does recoup some of its losses, according to technical analysis by NewsBTC’s Aayush Jindal, BTC could slide below the $60,000 support in the short term:
- Bitcoin failed to stay above $62,000 and continued its decline.
- Price is currently trading below $62,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $62.300 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair could extend the decline below the $60,500 and $60,000 support levels.
Bitcoin at Risk
Bitcoin dipped below the $62,500 support zone. A bottom was formed near $59,824 and the price is currently struggling to stay in a positive zone. 23% of the last drop from $63,700 to $59,824. 6 Fib tests retracement level.
It is facing resistance near the $60,800 and $61,000 levels. The first major resistance is near the $61,750 level and the 100 hourly SMA. The 50% Fib retracement level of the recent decline from the $63,700 high to $59,824 low is also near $61,800.
Will Bitcoin Rise?
The main breakout resistance is currently forming near the $62,000 level. There is also a key bearish trend line forming with resistance near $62.300 on the hourly chart of the BTC/USD pair. A clear break above the trendline resistance followed by $62,500 could likely open the doors for a move towards the $63,200 level. The next major resistance is near the $64,000 level.
Will It Drop More?
According to Jindal, if Bitcoin fails to break past the $62,000 resistance zone, it could continue to move lower. An immediate support on the downside is near the $60,000 level. The first major support is now formed near the $59,500 level. A break below the $59,500 support could push the price towards the $58,000 support zone in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
- Main Support Levels – 60,000 then $59,500
- Main Resistance Levels – $61.200, $62.000 and $62.300