Bitcoin has recently entered a downward trend, slipping beneath the $63,500 level. Currently, it is stabilizing above the $60,000 level, suggesting potential challenges ahead for a price recovery.
The cryptocurrency has experienced a drop of more than 5% from the resistance area around $65,000. Presently, Bitcoin ’s trading price is established below both the $63,500 level and the 100-hourly Simple Moving Average. A bearish trend line is also visible, with resistance identified at $62,800 on the hourly chart for the BTC/USD pair. However, should Bitcoin maintain its position above the $60,500 support level, it may be poised for another upward movement.
Initially, Bitcoin began its decline when it encountered resistance at $65,000. Subsequently, it fell below key support levels of $64,000 and $63,500, marking a shift into a short-term bearish condition. The price dipped as low as $60,281 and is now in a consolidation phase. This current valuation aligns with the 23.6% Fibonacci retracement level corresponding to the decline from a high of $66,055 to the recent low.
As Bitcoin trades below $62,500, resistance levels on the upside are crucial. A rise would likely meet challenges at approximately $61,650, with the first significant resistance appearing near the $62,500 level. Crucially, a decisive move past the $62,800 resistance could pave the way for a rally to the next level of resistance at around $63,200, which is near the 50% Fibonacci retracement level.
If Bitcoin fails to break through the $62,800 resistance, it risks further declines. Immediate support is established around the $61,000 level, while more substantial support is expected near $60,500 and $60,000. Continued losses could see the price approach the $58,500 level in the near future. Technical indicators suggest that the momentum is weakening, with the hourly MACD losing traction in the bearish zone and the Relative Strength Index falling below the neutral 50 level.
