Bitcoin price started a downside correction from the $71,650 resistance zone. BTC is now consolidating and might correct toward the $69,500 support.
💡 Key Highlights:
- Bitcoin struggled above $71,500 and started a downside correction.
- The price is trading above $70,000 and the 100 hourly Simple Moving Average.
- There was a break below a key bullish trend line with support at $70,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline further if there is a move below the $70,000 level.
📉 Bitcoin Price Starts Correction
Bitcoin price extended its increase above the $70,000 level. BTC was able to clear the $70,500 and $71,200 levels to move further into a positive zone. However, the bears were active near the $71,650 zone.
A high was formed at $71,682, and the price started a downside correction. The price declined below the 23.6% Fib retracement level of the upward wave from the $67,285 swing low to the $71,682 high. There was also a break below a key bullish trend line with support at $70,650 on the hourly chart of the BTC/USD pair.
The price tested the $70,200 support zone. Bitcoin is now trading above $70,000 and the 100 hourly Simple Moving Average. On the upside, the price is facing resistance near the $70,800 level.
🚀 Upside Potential
The first major resistance could be $71,200. The next key resistance could be $71,650. A clear move above the $71,650 resistance might send the price higher. In this case, the price could rise and test the $72,000 resistance. Any more gains might send BTC toward the $73,200 resistance.
🔻 More Downsides in BTC?
If Bitcoin fails to climb above the $71,200 resistance zone, it could continue to move down. Immediate support on the downside is near the $70,200 level.
The first major support is $70,000. The next support is now forming near $69,500 or the 50% Fib retracement level of the upward wave from the $67,285 swing low to the $71,682 high. Any more losses might send the price toward the $68,500 support zone in the near term.
📊 Technical Indicators:
- Hourly MACD: The MACD is now losing pace in the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now below the 50 level.
⚠️ Major Support Levels: $70,200, followed by $70,000.
🔼 Major Resistance Levels: $71,200, and $71,650.
Is this just a temporary setback, or a golden buying opportunity? Share your thoughts! 💬👇