Bitcoin Price Bleeds Lower With $65K Becoming The Battleground

Overview

Bitcoin’s price has recently experienced a downward shift, failing to maintain its position above $70,000. Currently, BTC is trading below $68,800, indicating a potential for further losses in the near future. The cryptocurrency is navigating through a bearish trend, with critical support and resistance levels impacting its price trajectory.

Current Price Movement

Bitcoin has struggled to hold above the $70,000 mark, initiating a decline that has seen it drop below the $68,800 support zone. This decline has pushed the price below $68,000 and the 100-hourly simple moving average. A bearish trend line is forming, with resistance identified at $68,200 on the hourly chart of the BTC/USD pair.

The recent price action indicates that Bitcoin dipped below the 50% Fibonacci retracement level of its upward movement from a swing low of $60,500 to a high of $72,256. As Bitcoin trades below $68,000, it faces immediate resistance near the $68,200 level, along with the trend line. If the price remains above $65,000, there is a possibility of a fresh increase.

Key resistance levels are identified at $69,000 and $70,000. A close above the $69,000 resistance could propel the price higher, potentially leading to tests of the $70,000 resistance level. Should gains continue, the next barriers for Bitcoin could be positioned at $71,500, $72,000, and $72,500.

Potential for Further Declines

If Bitcoin does not manage to rise above the $69,000 resistance zone, it may initiate another decline. Immediate support is noted around the $66,000 level, with the first major support located at $65,000, which coincides with the 61.8% Fibonacci retracement level of the upward move from the $60,500 swing low to the $72,256 high. A breach of this support could lead to further losses, with the next support zone identified at $63,500. Should the downturn continue, Bitcoin may approach the $62,000 support level in the near term, with the main support resting at $61,200. Falling below this level could hinder Bitcoin’s ability to recover in the short term.

Technical indicators suggest bearish momentum, with the hourly MACD gaining pace in the bearish zone. Additionally, the hourly RSI for BTC/USD is currently below the 50 level, further reflecting the negative market sentiment.

From author

The current market conditions for Bitcoin suggest a cautious outlook for traders and investors. The inability to maintain support levels above $70,000 indicates a potential vulnerability in the market. As Bitcoin approaches critical support levels, market participants may need to closely monitor price movements to gauge potential recovery or further declines.

Impact on the crypto market

• Bitcoin’s struggle to maintain its price above $70,000 could influence market sentiment, leading to increased caution among traders.
• The establishment of key support levels at $66,000 and $65,000 may become focal points for market activity in the near term.
• The bearish trend line and resistance at $68,200 may discourage bullish momentum, impacting overall market dynamics.
• Continued losses in Bitcoin could have a ripple effect on altcoins, as investor confidence may wane in a declining market.
• Technical indicators suggest a prevailing bearish sentiment, which may influence trading strategies and investment decisions across the cryptocurrency landscape.