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Bitcoin price started a downward correction and tested the $66,500 zone. BTC is now consolidating and could target another surge above $67,800.
- Bitcoin struggled to test the $70,000 resistance zone and began a downward correction.
- The price is trading below $67,500 and the 100 hourly Simple Moving Average.
- A short-term contract triangle is forming with support at $67,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a new rise unless there is a close below the $66,500 zone.
Bitcoin Price Begins Consolidation Phase
Bitcoin price struggled to continue higher towards the $70,000 level and started a downward correction. There was a move below the USD 68,500 and USD 67,500 levels.
The price even tested the USD 66,500 support zone. A low was formed at $66,564 and the price is now consolidating losses. There was a small increase above the USD 66,850 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $69,427 swing high to the $66,564 low.
Bitcoin price is now trading below $67,500 and the 100 hourly Simple Moving Average. On the upside, the price could encounter resistance near the USD 67,100 level. A short-term contracting triangle is also forming with support at $67,100 on the hourly chart of the BTC/USD pair.
The first major resistance is near the $68,000 level or the 50% Fib retracement level of the downward move from the $69,427 swing high to the $66,564 low. A clear move above the USD 68,000 resistance could push the price higher. The next major resistance could be at USD 68,500.
A close above the $68,500 resistance could lead to more gains. In the said case, the price could rise and test the USD 69,200 resistance level. Any further gains could send the price towards the USD 70,000 resistance level.
Another drop in BTC?
If Bitcoin fails to rise above the USD 67,100 resistance zone, it could trigger another decline. The immediate downside support is near the $66,800 level.
The first major support is near the $66,500 level. The next support is now near the $66,200 zone. Any further losses could send the price towards the USD 65,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 66,800, followed by USD 66,500.
Major resistance levels – $67,100 and $68,000.
