Bitcoin has recently embarked on a downside correction after encountering resistance near $65,000. The cryptocurrency has experienced a notable dip, currently trading below $63,500, and is positioned below the 100 hourly simple moving average. An important bullish trend line also broke down, with support previously noted at around $63,400.
The upward momentum was halted when Bitcoin peaked at $64,950, unable to surpass the significant resistance level at $65,000. Following this high, the price began to decline, falling beneath the $64,000 mark and dipping below the 23.6% Fibonacci retracement level of the prior ascent from a low of $58,572 to the recent high. The ongoing price action indicates a potential retreat towards the $61,750 support area, which aligns with the 50% Fibonacci retracement level from the previously mentioned low.
Should Bitcoin increase, it is likely to face resistance at the $63,500 level, with the $64,000 mark serving as a critical barrier above that. For the price to rally significantly, a decisive move over $64,000 is necessary, which could pave the way for a challenge of the $65,000 resistance again. A sustained breakthrough above this level might trigger further gains, potentially pushing the price towards $66,500.
On the downside, if Bitcoin struggles to reclaim the $63,500 resistance, it may continue its downward trend. Immediate support can be found near the $62,500 level, with significant support levels at $62,200 and further at $61,750. If negative momentum persists, prices could potentially dip down to the $60,000 mark. Current technical indicators highlight a bearish shift, with the MACD showing increased activity in the negative zone and the RSI falling below the 50 level.
