Bitcoin started a downside correction after setting a new record. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could start a fresh increase unless it breaks below $64,000:
- Bitcoin started a downside correction below the $68,000 and $67,000 levels.
- Price is still trading above $65,000 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $66,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- 64. If the $000 support remains intact, the pair could start a fresh increase.
Bitcoin Experiencing Correction
Bitcoin started a downside correction after setting a new ATH above $68,000. The price settled below the $68,000 and $67,800 support levels. There was a break below the 50% Fib retracement level of the upward move from the $65.200 high to $68.495 high. However, BTC is still trading above $65,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $66,000 on the hourly chart of the BTC/USD pair.
An immediate upside resistance is near the $67,500 level. The first major resistance is near the $68,000 level. A clear break above the $68,000 resistance could open the door for a fresh rise. The next major resistance is near the $68,500 level. Any further gains could lead the price towards the $70,000 level.
Will Bitcoin Drop?
According to Jindal, if Bitcoin fails to break past the $68,000 resistance zone, it could extend its downside correction. An immediate support on the downside is near the $66,500 level. The first major support is now formed near the $66,400 level. This is 61% of the upward move from $65,200 to $68,495. Close to 8 Fib retracement level. The next major support is near the $65,000 level, below which the price could decline towards the key breakout support at the $64,000 level in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just below the 50 level.
- Main Support Levels – 66.400 then $66,000
- Main Resistance Levels – $67.500, $68.000 and $68.500
