Bitcoin price started a downward correction from the $64,600 zone. BTC is showing bearish signs and could continue lower below $61,200.
- Bitcoin failed to stay above $64,000 and extended losses.
- The price is trading below $62,800 and the 100 hourly moving average.
- There was a break below a bullish trendline with support at $62,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend losses if it remains below the USD 62,500 and USD 62,200 levels.
Bitcoin price drops again
Bitcoin price failed to break the USD 64,500 resistance zone. BTC initiated a downward correction and fell below the key support at USD 63,500 to enter a bearish zone.
There was a move below the 50% Fib retracement level of the upward move from the $59,070 swing low to the $64,613 high. Moreover, there was a break below a bullish trendline with support at $62,500 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading below $62,500 and the 100 hourly moving average. If the price remains stable above $61,500, another move up could be attempted. The immediate resistance is near the $62,000 level. The first major resistance is near the $62,200 level.
A close above the USD 62,200 resistance could send the price rising further. In the mentioned case, the price could rise and test the USD 64,000 resistance. The next resistance could be near the USD 64,500 level. Any further gains could send the price towards the USD 66,000 level. The main hurdle for the bulls could be $66,500.
Disadvantage extension in BTC?
If Bitcoin fails to rise above the USD 62,500 resistance zone, it could trigger another decline. Immediate support is near the $61,200 level or the 61.8% Fib retracement level of the upward move from the $59,070 swing low to the $64,613 high.
The first major support is near the $60,950 level. The next support is now near the $60,200 zone. Any further losses could send the price towards the USD 59,000 support in the short term. The key support now lies at $58,500, 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 61,200, followed by USD 60,200.
Major resistance levels – $62,500 and $64,000.