Bitcoin price started a downward correction from the USD 71,650 resistance zone. BTC is now consolidating and could correct towards the USD 69,500 support.
- Bitcoin struggled above $71,500 and started a downward correction.
- The price is trading above $70,000 and the 100 hourly Simple Moving Average.
- There was a break below a key bullish trendline with support at $70,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could fall further if there is a move below the USD 70,000 level.
Bitcoin Price Begins Correction
Bitcoin price extended its rise above the $70,000 level. BTC was able to break the USD 70,500 and USD 71,200 levels to move further into a positive zone. However, the bears were active near the $71,650 zone.
A high was reached at $71,682 and the price started a downward correction. The price fell below the 23.6% Fib retracement level of the upwave from the $67,285 swing low to the $71,682 high. There was also a break below a key bullish trendline with support at $70,650 on the hourly chart of the BTC/USD pair.
The price tested the USD 70,200 support zone. Bitcoin is now trading above $70,000 and the 100 hourly Simple Moving Average. On the upside, the price is facing resistance around the $70,800 level.
The first major resistance could be at $71,200. The next major resistance could be $71,650. A clear move above the USD 71,650 resistance could push the price higher. In the mentioned case, the price could rise and test the USD 72,000 resistance. Even more gains could send BTC towards the USD 73,200 resistance.
More disadvantages of BTC?
If Bitcoin fails to climb above the USD 71,200 resistance zone, it could continue to decline. The immediate downside support is near the USD 70,200 level.
The first major support is $70,000. The next support is now forming near $69,500 or the 50% Fib retracement level of the upward wave from the $67,285 swing low to the $71,682 high. Any further losses could send the price towards the $68,500 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 70,200, followed by USD 70,000.
Major resistance levels – $71,200 and $71,650.