The Bitcoin price started a sharp decline well above $73,000. BTC is now consolidating and could target another surge if it clears $72,400.
- Bitcoin started a sharp decline below $72,000 and $71,500.
- The price is trading below $72,500 and the 100 hourly moving average.
- A bearish trendline is forming with resistance at $71,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it crosses the $71,500 and $72,400 levels.
Bitcoin Price Begins Consolidation
The Bitcoin price started a sharp decline well above $73,000. BTC fell below USD 72,500 and USD 72,000 and entered a bearish zone for the short term.
The bears even pushed the price below $71,200. There was a move towards $68,800. A low was formed at $68,782, and the pair is now consolidating losses. There was a small upward move above $70,000. The price tested the 23.6% Fib retracement level from the recent decline from the $75,998 swing high to the $68,782 low.
Bitcoin is now trading below $72,000 and the 100 hourly moving average. Moreover, a bearish trendline is forming with resistance at $71,550 on the hourly chart of the BTC/USD pair.
If the price remains stable above $69,000, another move up can be attempted. The immediate resistance is near the $70,800 level. The first major resistance is near the $71,500 level and trendline. A close above the USD 71,500 resistance could send the price higher.
In the said case, the price could rise and test the $72,400 resistance or the 50% Fib retracement level of the recent decline from the $75,998 swing high to the $68,782 low. Any further gains could send the price towards the USD 73,250 level. The next barrier for the bulls could be $74,000.
Disadvantage extension in BTC?
If Bitcoin fails to rise above the USD 72,400 resistance zone, it could trigger another decline. The immediate support is near the $69,650 level. The first major support is near the $69,000 level.
The next support is now near the $68,800 zone. Any further losses could send the price towards the USD 68,000 support in the near term. The key support now lies at $67,200, below which BTC could struggle to recover 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 69,650, followed by USD 68,800.
Major resistance levels – $71,500 and $72,400.