Bitcoin started a downside correction yesterday after breaking a new record around 67,000 and slumped as low as $62,050. Bitcoin is now correcting the decline and is at risk of further declines, according to technical analysis from NewsBTC’s Aayush Jindal:
- Bitcoin climbed above the $65,000 and $66,000 resistance levels before correcting further.
- Price is currently trading below $63,000 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $63.200 on the hourly chart of the BTC/USD pair (data from Kraken).
- If the pair stays below the $64,000 pivot level, further declines could accelerate.
Bitcoin Experiencing Correction
Bitcoin started a downside correction below the $65,000 support level. There was a break below a major bullish trend line with support near $63,200 on the hourly chart of the BTC/USD pair. The pair is now trading below the $63,000 level and the 100 hourly simple moving average.
A low was formed near $62,050 and the pair is currently consolidating its losses. An immediate resistance, according to Jindal, is near the $63,200 level. This is 23% of the downward move from $66,982 to $62,050. Close to 6 Fib retracement level. The 100 hourly SMA is also located just above the $63.200 level.
63. Key Level For $200 Rise
A clear break above the $63,200 resistance could open the doors for a fresh increase. The next major resistance is near the $64,500 level, above which the price could rise again towards the $66,000 level. The $64,500 resistance is close to the 50% Fib retracement level of the downside move from the $66,982 high to $62,050 high. Any further gains could likely bring the all-time high above the $67,000 level in the near term.
Will Bitcoin Keep Falling?
Jindal says that if Bitcoin fails to break through the $63,200 resistance zone, it may continue its downside correction. An immediate support on the downside is near the $62.200 level. The first major support is now formed near the $62,000 level. A break below the $62,000 support could likely push the price towards the $60,000 support zone.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
- Main Support Levels – 62.200 then $62,000
- Main Resistance Levels – $63,200, 64,500 and $66,000