Bitcoin has been experiencing difficulties in determining its direction in recent days. The pioneer of the cryptocurrency world continues its tough battle in the $70,000 resistance zone. However, recent developments indicate that BTC is trending back towards the red. At the time of writing, BTC has fallen to levels around $66,000. So, what levels should be monitored for BTC at this point?
Bitcoin Price Drops by 5 Percent
BTC/USD pair continues its downward trend, suffering a loss of over 5% and falling below the $67,500 level. When we examine these market developments in detail, we can see that the momentum of decline has been gained from the $70,000 resistance zone. The price is currently trading below $68,500 and is also under the 100-hour simple moving average.
Looking closely at the hourly chart, we notice the formation of a significant downward trend line around $68,400. This suggests that BTC’s downward trend could extend towards the $64,000 support zone in the near term.
Sharp Movements in BTC
With the recent movements, the BTC price broke the $69,200 support zone and sharply retreated below the $68,500 level. We even observed an acceleration in the decline as the price fell below the $67,000 level. Bitcoin, having tested the $66,000 level most recently, is now in the midst of a recovery wave.
However, with the price moving above the $66,800 level, we see it has risen above the 23.6% Fibonacci retracement level of the downward move from $69,884 to $65,992. Meanwhile, the immediate resistance is near the $68,000 level. This level is close to the 50% Fibonacci retracement level of the downward move.
If Bitcoin Fails to Surpass Key Resistance
Bitcoin’s inability to break above the $68,000 resistance level is catching the attention of many analysts and increasing the likelihood of a downward move. Currently, an immediate support level seems to be near $66,000. However, a break below this level could drive the price further down.
Upon examining BTC’s current situation, we find that the first major support level is at $65,000. If the price falls below this, the next support is at $64,000. From there, a retreat to around $62,500 seems possible. Further losses could drag the price towards the $60,500 support zone in the near term.
Looking at the technical indicators, we see that the hourly MACD is in the bearish zone. Similarly, the hourly RSI (Relative Strength Index) for BTC/USD is trending below the 50 level, indicating that selling pressure continues.
The main support levels to note are $66,000 and $65,000. However, if the desire for an uptrend persists, resistance levels of $68,000, $68,500, and $70,000 emerge as barriers.
