Bitcoin has seen a notable increase, surpassing the $66,000 level, but is now experiencing a downward correction. Currently, it trades below $65,500 and could potentially decline further, with support anticipated around the $64,000 level.
After breaking through the $65,500 resistance zone, Bitcoin reached a peak of $66,452. However, this high was followed by a retreat, pushing the price below the significant $66,000 level and down to the 23.6% Fibonacci retracement level of its recent upward movement from a low of $62,672. The breach of a short-term bullish trend line, which had a support level at $65,750, has contributed to the current downward trajectory, with trading now taking place beneath both $65,250 and the 100-hourly simple moving average.
In the current market conditions, Bitcoin ’s bulls are focused on maintaining the price above the $64,500 area. If upward momentum resumes, initial resistance is seen at around $65,250, with a stronger barrier at $65,500. A successful advancement past $65,500 could pave the way for new gains, potentially propelling Bitcoin towards the $66,500 resistance. A definitive closing above this level may ignite further upward movement, possibly testing the $68,000 level.
On the contrary, if Bitcoin struggles to break through the $65,500 resistance, it may continue facing downward pressure. Key immediate support is identified close to the $64,200 level, in conjunction with the 61.8% Fibonacci retracement from the same swing low to high. Should this initial support fail, the critical support levels of $64,000 and $63,500 will come into play, with further declines possibly bringing Bitcoin down to around $62,650 in the short term.
Current technical indicators reflect a strengthening bearish trend, with the hourly MACD showing increased momentum in the bearish zone, while the Relative Strength Index has dipped below 50, indicating a weakening buying strength.
