Bitcoin price extended its rally above the $67,500 resistance level. BTC tested the $68,000 resistance level and is currently correcting gains.
- Bitcoin started a downward correction after rising towards the $68,000 resistance area.
- The price is trading below the $67,000 level and the 100 hourly simple moving average.
- There was a break below the upward trend line connected with support at $65,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another rally unless the bears push it below $65,900.
Bitcoin price begins a downward correction
Bitcoin price remained stable above $66,500. BTC extended its rally above the $67,200 and $67,500 resistance levels. It traded to a new weekly high of $67,984 and recently began a downward correction.
There was a move below the $67,000 support area. Moreover, there was a break below the connecting uptrend line with support at $65,900 on the hourly chart of the BTC/USD pair. The pair also fell below the $66,500 support area.
Bitcoin price is now trading below $67,000 and the 100 hourly simple moving average. A bottom was formed at $65,922 and the price is now trying a new increase.
There was a move above the $66,200 level. The price rose above the 23.6% Fibonacci retracement level of the downside correction from the swing high of $67,984 to the swing low of $65,922. The price is now facing resistance near the $66,500 level and the 100 hourly simple moving average.
The first major resistance could be at $66,950. It is close to the 50% Fibonacci retracement level of the downward retracement from the swing high at $67,984 to the swing low at $65,922. The next major resistance could be $67,500. A clear move above the $67,500 resistance level could send the price higher. In the mentioned case, the price may rise and test the $68,000 resistance level.
If the bulls remain in action, the price could rise towards the $68,800 resistance area. Any further gains could send BTC towards the $70,000 mark.
Another drop in BTC?
If Bitcoin fails to rise above the $66,500 resistance area, it may continue to move lower. Immediate support on the downside is near the $66,000 level and the trend line.
The first major support is $65,500. Major support is now forming near $64,500. Any further losses could send the price towards the $63,150 support area in the near term.
Technical indicators:
Hourly MACD – The MACD indicator is now losing speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key Support Levels – $65,900, followed by $65,500.
Major resistance levels – $66,500, $67,000, and $67,500.
