Bitcoin price corrects gains from the $73,500 zone. BTC is back below the $70,000 level and showing some bearish signs.
- Bitcoin started a new decline from the $73,500 zone.
- The price is trading below $71,500 and the 100 hourly Simple Moving Average.
- There was a break below a key bullish trendline with support at $70,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is showing some bearish signs and could test the $68,500 support zone.
Bitcoin price cuts gains
Bitcoin price failed to reach a new all-time high and started a downside correction from the USD 73,500 resistance zone. There was a move below the USD 72,500 and USD 72,000 support levels.
The price fell below the 50% Fib retracement level of the upwave from the $65,531 swing low to the $73,575 high. Additionally, there was a break below a key bullish trendline with support at $70,000 on the hourly chart of the BTC/USD pair.
The price has fallen by more than 5% and there was a move below $70,000. Bitcoin price is now trading below $70,000 and the 100 hourly Simple Moving Average. It is now approaching the $68,500 support zone and the 61.8% Fib retracement level of the upward wave from the $65,531 swing low to the $73,575 high.
On the upside, the price could encounter resistance around the USD 70,000 level. The first major resistance is around the $70,500 level. A clear move above the USD 70,500 resistance could push the price higher. The next major resistance could be at USD 71,200.
A close above the resistance at $71,200 could lead to more gains. In the said case, the price could rise and test the USD 72,500 resistance level. Any further gains could send the price towards the USD 73,200 resistance level. Any gains could require a $73,500 test.
More disadvantages of BTC?
If Bitcoin fails to rise above the $70,000 resistance zone, the price may continue to decline. The immediate downside support is near the $68,800 level.
The first major support is near the $68,500 level. The next support is now near the $67,400 zone. Any further losses could send the price towards the USD 66,500 support in the short 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 68,500, followed by USD 67,400.
Major resistance levels – $70,000 and $71,200.
