Bitcoin has entered a phase of downside correction after failing to maintain upward momentum towards the significant $70,000 resistance level. As the price dipped below the key levels of $68,500 and $67,500, it tested the $66,500 support zone, where it found some respite with a low point recorded at $66,564. Currently, the cryptocurrency is consolidating its losses and has shown signs of a minor recovery, climbing back to approximately $66,850.
Trading is now being conducted below $67,500 and the 100-hour Simple Moving Average, indicating short-term weakness. The price pattern has formed a contracting triangle with support identified at $67,100. This configuration suggests that the BTC/USD trading pair may have the potential to initiate a fresh upward move unless there’s a decisive break below the $66,500 level.
Looking ahead, key resistance levels have been established. The initial hurdle appears at $68,000, which coincides with the 50% Fibonacci retracement of the recent decline from the swing high of $69,427 to the low of $66,564. A solid move above this resistance could lead the price towards $68,500, with further upside potential toward $69,200 and, potentially, the $70,000 level.
In the event that Bitcoin is unable to overcome the resistance at $67,100, there exists a risk of further declines. Immediate support lies around $66,800, followed by more substantial support at the $66,500 level. If losses continue, the price may drop to test the $66,200 area, with a more significant downturn possibly leading to the $65,500 support zone.
Technical indicators reflect the current market sentiment, with the hourly MACD showing diminished bearish momentum and the Relative Strength Index remaining below neutral levels, highlighting the cautious outlook among traders.
