The Bitcoin price started a sharp decline well above $72,000. BTC is now consolidating and could extend losses unless there is a close above $70,000.
- Bitcoin started a sharp decline below $71,200 and $70,500.
- The price is trading below $70,500 and the 100 hourly moving average.
- A bearish trendline is forming with resistance at $69,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it remains below the USD 69,200 and USD 70,000 levels.
Bitcoin price continues to fall
The Bitcoin price started a sharp decline well above $72,000. BTC fell below USD 71,200 and USD 70,000 and entered a bearish zone for the short term.
The bears even pushed the price below $69,500. There was a move towards $67,500. A low was formed at $67,343, and the pair is now consolidating losses. There was a small upward move above $68,000, but the price remained well below the 23.6% Fib retracement level of the downward move from the $75,999 swing high to the $67,343 low.
Bitcoin is now trading below $70,000 and the 100 hourly moving average. Furthermore, a bearish trendline is forming with resistance at $69,200 on the hourly chart of the BTC/USD pair.
If the price remains stable above $68,000, another move up can be attempted. The immediate resistance is near the $69,000 level. The first major resistance is near the $69,200 level and trendline. A close above the USD 69,200 resistance could send the price rising further.
In the mentioned case, the price could rise and test the USD 70,000 resistance. Any further gains could send the price towards the $71,650 level or towards the 50% Fib retracement level of the downward move from the $75,999 swing high to the $67,343 low. The next threshold for the bulls could be $72,800.
Disadvantage extension in BTC?
If Bitcoin fails to rise above the $70,000 resistance zone, it could trigger another decline. Immediate support is near the $68,000 level. The first major support is near the $67,250 level.
The next support is now near the $66,500 zone. Any further losses could send the price towards the USD 65,000 support in the near term. The key support now lies at $63,500, below which BTC could struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 68,000, followed by USD 67,250.
Major resistance levels – $69,200 and $70,000.