Bitcoin had a painful weekend. Testing the $59.500 level, Bitcoin is currently recovering, but according to the technical analysis of NewsBTC’s Aayush Jindal, rises may be limited to the $63.250 level in the short term:
- Bitcoin dipped below the $63,200 and $62,000 support levels.
- Price is currently trading below $62,000 and the 100 hourly simple moving average.
- There was a break above a key downtrend line with resistance near $61,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- If there is a close above the 100 hourly SMA followed by $63.250, the pair could start to rise.
Bitcoin Faces Barriers
BTC corrected below the $65,000 and $63,250 support levels. There was also a break below the $62,000 support area and the 100 hourly simple moving average. Finally, the price declined below $60,000 but the bulls were active above the $59,500 level. A bottom was formed near $59.610, and the price is now consolidating losses. There was a recovery wave above the $60.500 and $61,000 levels. Bitcoin is 23% of the downward move from $66,982 to $59,610. Breaks the 6 Fib retracement level.
There was a break above a key bearish trend line with resistance near $61,000 on the hourly chart of the BTC/USD pair. The pair is now facing a resistance near the $62,000 level and the 100 hourly SMA. A clear break above the $62,000 resistance could open the doors for a fresh increase.
The next major resistance for Bitcoin is near the $63.250 level. This is close to the 50% Fib retracement level of the bearish move from the $66,982 high to $59,610 high. Any further gains could likely open the doors for a move towards the $64,000 level. The next major resistance is near the $65,000 level.
Will Bitcoin Drop?
According to Jindal, if Bitcoin fails to break past the $63.250 resistance zone, it could continue its downside correction. An immediate support on the downside is near the $61,200 level. The first major support is currently formed near the $60,000 level. A break below the $60,000 support could likely push the price towards the $58,000 support zone.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Main Support Levels – 61.200 then $60,000
- Main Resistance Levels – $62.000, $62.500 and $63.250