Bitcoin price dropped below $70,000, worrying investors. Currently testing the $68,800 support, the cryptocurrency may start a new rise if it doesn’t fall below this level. However, if this critical support level is broken, a more serious downtrend could occur. Bitcoin’s future largely depends on whether this support level can be maintained.
Bitcoin Struggled to Stay Above $70,000
In the past few days, Bitcoin struggled to stay above the $71,500 level. After recording its highest level at $71,896, Bitcoin entered a downward correction process. Now, all eyes are on the $68,800 support zone. Bulls are active at this level, fighting to pull the price back up.
Bitcoin is currently trading above the $69,000 level. However, there is significant resistance at the $69,650 level. The first major resistance is at the $70,000 level. The hourly chart of the BTC/USD pair shows a downtrend line forming with resistance at $70,000.
If this trend line is surpassed, Bitcoin’s next major resistance will be at the $70,500 level. A clear move above $70,500 could push the price higher. In this case, Bitcoin could test the $71,200 resistance. If bulls push the price further, a move towards the $71,800 resistance zone is possible. Further gains could send BTC towards the $72,500 resistance.
Expectations of a Downward Break in Bitcoin
If Bitcoin closes below the $68,800 support, the price’s downtrend could accelerate. Staying below this level could cause panic among investors and increase selling pressure. In such a scenario, Bitcoin could retreat to the $66,000 level.
Initially, if Bitcoin experiences a downward move, the nearest support level is noted at $69,000. This level is one of the critical points where Bitcoin’s recent upward movement began. If this support is broken, the next major support level is highlighted at $68,800. The importance of this level stems from being one of the points where BTC’s upward movement started.
Further down, significant supports are found at the $67,420 and $66,046 levels. If the BTC price falls below these levels, more losses towards the $66,000 support zone could occur.
Looking at technical indicators, the hourly chart’s MACD is currently losing speed in the bearish zone. The MACD indicator is an important tool used to determine the momentum of price movements and potential turning points. A MACD losing speed in the bearish zone indicates that the downward movement may continue.
Another important technical indicator, the RSI (Relative Strength Index), is currently below 50 for the BTC/USD pair. An RSI below 50 indicates that sellers are stronger in the market and prices are in a downward trend. The RSI gives oversold signals below 30 and overbought signals above 70. Currently being below 50 indicates a bearish market trend.
