Bitcoin Extends Correction, Why The Bulls Might Take Back Step

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price started a downside correction below $66,000 against the US Dollar. BTC might extend its downside correction towards $62,000 in the near term.

Bitcoin started a downside correction below the $66,000 and $65,000 levels.
The price is now trading below $65,000 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $66,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move down towards the $62,000 support.

Bitcoin Price Corrects Lower

Bitcoin price failed to gain pace above the $66,000 resistance zone. As a result, BTC saw a bearish reaction below the $65,500 support level.

There was a clear break below the $65,000 support and the 100 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $66,500 on the hourly chart of the BTC/USD pair.

The pair gained pace below the $65,000 support and the price dropped towards $63,000. A low is formed near $62,700 and the price is now consolidating losses. There was a recovery wave above the 23.6% Fib retracement level of the recent decline from the $68,991 swing high to $62,700 low.

On the upside, an immediate resistance is near the $64,800 level. The first major resistance is near the $65,000 level and the 100 hourly SMA. The main resistance is now forming near the $65,800 level.

Source: BTCUSD on TradingView.com

It is close to the 50% Fib retracement level of the recent decline from the $68,991 swing high to $62,700 low. A clear break above $65,800 resistance may possibly call open the doors for a fresh increase. The next major resistance sits near the $67,500 level.

More Losses in BTC?

If bitcoin fails to clear the $65,000 resistance zone, it could extend its downside correction. An immediate support on the downside is near the $63,500 level.

The first major support is now forming near the $63,000 level. The next major support is near the $62,500 level, below which the price could even struggle to stay above the $62,000 support zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $63,500, followed by $62,500.

Major Resistance Levels – $65,000, $65,800 and $66,500.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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