Bitcoin price extended gains above $66,000. BTC is now correcting gains below $65,500 and it could continue to decline towards $64,000.
* Bitcoin is correcting gains from the $66,500 area.
* The price is trading below the $65,250 level and the 100 hourly simple moving average.
* There was a break below a short term bullish trend line with support at $65,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
* If the pair stays above the $64,000 support area, the pair might start rising again.
Bitcoin price starts downside correction
Bitcoin price remained supported near the USD 63,250 level. BTC extended gains above the USD 65,500 resistance area. It even broke the USD 66,000 level.
A high was formed at $66,452 and the price is now correcting gains below the $66,000 level. The price declined below the 23.6% Fib retracement level of the upward move from the $62,672 swing low to $66,452 high.
There was a break below a short term bullish trend line with support at $65,750 on the hourly chart of the BTC/USD pair. Bitcoin is currently trading below $65,500 and the 100 hourly simple moving average.
The bulls are now trying to protect the $64,500 area. If there is a fresh increase, the price is likely to face resistance near $65,250. The first key resistance is near $65,500. A clear break above the $65,500 resistance is likely to carry the price higher.
The next key resistance could be $66,500. A close above the $66,500 resistance could spark more upsides. In the stated case, the price could rise and test the $68,000 resistance.
More losses for BTC?
If bitcoin fails to rise above the $65,500 resistance area, it might continue to decline. An immediate support on the downside is near the $64,200 level and the 50% Fib retracement level of the upward move from the $62,672 swing low to $66,452 high.
The first major support is near the $64,000 level. The next support is now near the $63,500 area. Any more losses could potentially sink the price to the $62,650 support level in the near term.
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 – $64,200, followed by $64,000.
Major Resistance Levels – $65,250 and $65,500.
