Bitcoin’s Price Decline: Key Support Levels Under Observation
Bitcoin is currently experiencing a downside correction as its price retraces from the significant resistance level of $65,000. The cryptocurrency’s recent performance suggests it may test the support level at $61,750 before initiating another potential upward movement. Following its inability to surpass the $65,000 threshold, Bitcoin saw a price adjustment, trading now below $63,500 and beneath the 100 hourly Simple Moving Average.
There was a notable breach of a key bullish trend line that provided support at $63,400 on the hourly chart of the BTC/USD pair, indicating weakened buying pressure. Signs indicate that the pair may further decline toward the $61,750 level, which coincides with the 50% Fibonacci retracement of the recent upward trajectory from the swing low of $58,572 to the high of $64,950.
Currently, Bitcoin’s price action points to resistance situated around $63,500, with $64,000 serving as the next significant resistance point. Should the price surpass $64,000, there is potential for further gains, possibly testing the psychological resistance at $65,000 and potentially reaching as high as $66,500.
Conversely, should Bitcoin fail to break above the $63,500 resistance zone, a continued decline appears plausible. Immediate support can be found near the $62,500 mark, with major support levels at $62,200 and the pivotal $61,750 area. Further price declines could lead the cryptocurrency toward the significant support level of $60,000 in the near term.
Technical indicators present a bearish outlook, with hourly MACD gaining traction in the negative zone and the Relative Strength Index (RSI) below the neutral 50 level. Thus, careful monitoring of these support and resistance levels is crucial for potential traders and investors in the cryptocurrency market.
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