Bitcoin Faces Resistance After Recent Decline
After reaching a high of $65,000, Bitcoin has experienced a downward trend, falling below key support levels. Currently trading above $60,000, the leading cryptocurrency is encountering several obstacles on its path to recovery.
- Bitcoin has dropped by over 5% from its peak at $65,000.
- The price is now below $63,500 and the 100-hour Simple Moving Average.
- On the hourly chart of the BTC/USD pair from Kraken, a bearish trend line with resistance at $62,800 is evident.
- For Bitcoin to see an upward trend, it must maintain support above $60,500.
Bitcoin Price Dips Below $61,500
Following its resistance at $65,000, Bitcoin faced a downward trajectory, breaking through support levels at $64,000 and $63,500. The digital asset even dropped below $61,500, hitting a low of $60,281 before stabilizing.
Currently, Bitcoin is consolidating losses near the 23.6% Fibonacci retracement level from its recent high of $66,055 to the low of $60,281.
Trading below $62,500 and the 100-hour Simple Moving Average, Bitcoin faces resistance at the $61,650 level. A connecting bearish trend line with resistance at $62,800 further challenges its upward movement.
If Bitcoin manages to break above $62,800, it could encounter resistance at $63,200, near the 50% Fibonacci retracement level. A clear breach of this level might propel the price towards $64,000 and potentially $65,000.
Potential Downside Risks for Bitcoin
If Bitcoin fails to surpass the $62,800 resistance level, it might continue its downward trajectory. Immediate support is expected near $61,000, followed by a major support level at $60,500. Further losses could push the price towards $60,000 and potentially $58,500 in the short term.
Key technical indicators to watch include the MACD, which is showing a bearish trend, and the RSI for BTC/USD, currently below the 50 level.
Key Support Levels: $60,500, $60,000
Key Resistance Levels: $61,650, $62,800