Aayush Jindal
Bitcoin price started a downside correction and tested the $66,500 zone. BTC is now consolidating and might aim for a fresh increase above $67,800.
- Bitcoin struggled to test the $70,000 resistance zone and started a downside correction.
- The price is trading below $67,500 and the 100 hourly Simple moving average.
- There is a short-term contracting triangle forming with support at $67,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase unless there is a close below the $66,500 zone.
Bitcoin Price Starts Consolidation Phase
Bitcoin price struggled to continue higher toward the $70,000 level and started a downside correction. There was a move below the $68,500 and $67,500 levels.
The price even tested the $66,500 support zone. A low was formed at $66,564 and the price is now consolidating losses. There was a minor increase above the $66,850 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $69,427 swing high to the $66,564 low.
Bitcoin price is now trading below $67,500 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $67,100 level. There is also a short-term contracting triangle forming with support at $67,100 on the hourly chart of the BTC/USD pair.
The first key resistance is near the $68,000 level or the 50% Fib retracement level of the downward move from the $69,427 swing high to the $66,564 low. A clear move above the $68,000 resistance might send the price higher. The next key resistance could be $68,500.
A close above the $68,500 resistance might initiate more gains. In the stated case, the price could rise and test the $69,200 resistance level. Any more gains might send the price toward the $70,000 resistance level.
Another Decline In BTC?
If Bitcoin fails to rise above the $67,100 resistance zone, it could start another decline. Immediate support on the downside is near the $66,800 level.
The first major support is near the $66,500 level. The next support is now near the $66,200 zone. Any more losses might send the price toward the $65,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $66,800, followed by $66,500.
Major Resistance Levels – $67,100, and $68,000.
