Bitcoin price started a new decline below the $73,800 zone. BTC is consolidating and could continue to fall if it falls below $72,500.
- Bitcoin failed to stay above $74,200 and extended losses.
- The price is trading below $73,800 and the 100 hourly moving average.
- There was a break below an ascending channel with support at $73,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend losses if it remains below the USD 74,200 and USD 74,500 levels.
Bitcoin price turns red
Bitcoin price failed to stay above the $75,000 support zone. BTC remained in a bearish zone and extended losses below the USD 74,500 level. There was a move below the $74,000 level.
The price even dropped below $73,000. A low was formed at $72,470 and the price recently tried to make a recovery wave. There was a small move above the 23.6% Fib retracement level of the downward move from the $77,810 swing high to the $72,470 low.
However, it faced resistance near $74,000. Recently, there was a break below a rising channel with support at $73,550 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $73,800 and the 100 hourly moving average.
If the price remains stable above $72,000, another increase can be attempted. Immediate resistance is near the $73,850 level. The first major resistance is around the $74,000 level. A close above the USD 74,000 resistance could send the price higher. In the mentioned case, the price could rise and test the USD 74,500 resistance.
Any further gains could send the price towards the $75,150 level or towards the 50% Fib retracement level of the downward move from the $77,810 swing high to the $72,470 low. The next threshold for the bulls could be $75,500.
Disadvantage of continuation in BTC?
If Bitcoin fails to rise above the USD 74,200 resistance zone, it could trigger another decline. Immediate support is near the $73,000 level.
The first major support is near the $72,500 level. The next support is now near the $72,000 zone. Any further losses could send the price towards the USD 71,500 support in the short term. The key support now lies at $70,850, 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 72,500, followed by USD 72,000.
Major resistance levels – $74,000 and $74,500.