Bitcoin’s recent performance has shown a significant decline, with the cryptocurrency’s price plummeting to around $60,000. This marks a decline of over 10%, as the market grapples with challenges in rallying above the critical $70,000 resistance mark. Despite current attempts to recover, the currency continues to face several obstacles.
As of now, Bitcoin is trading below the key $70,000 threshold, along with the 100-hour simple moving average. Technical analysis indicates the formation of a bearish trend line, presenting resistance around $70,600 on the hourly chart for the BTC/USD pair. Market analysts suggest that if Bitcoin dips below specific levels, particularly $62,500 and $61,200, it may head towards another decline.
In recent sessions, Bitcoin struggled to maintain stability above the $72,000 range, leading to further decreases below the $70,000 and $68,500 levels. As a result of increased selling pressure, the bears succeeded in pushing the price down to a low of $60,500. Although there has been a slight uptick, with Bitcoin rising above $62,000 and $63,200, it remains substantially anchored below $68,000 and the aforementioned moving average.
When analyzing the potential for recovery, the next immediate resistance is positioned near the $66,000 level, followed closely by a key resistance at $67,200. A sustained closure above this level could enable Bitcoin to test the $68,500 resistance or the 50% Fibonacci retracement level from the recent downward movement originating from the $76,865 peak to the recent low of $60,500. Should these gains materialize, it might push the price toward $70,500, further complicating the bearish trend.
Conversely, there remains a possibility of another decline if Bitcoin cannot surpass the challenging $68,500 resistance zone. Immediate support is located around the $63,200 level, with more substantial backing at the critical $62,500 threshold. Should the market turn even more bearish, the next support level sits near $61,200, with the primary support at $60,000. Falling below this crucial level may hinder Bitcoin’s recovery prospects in the near future.
Technical indicators also support the current bearish sentiment, as the hourly MACD is gaining traction in the negative territory, and the Relative Strength Index (RSI) for BTC/USD has dipped below the neutral 50 level. The current trading environment indicates that Bitcoin’s path forward will likely be dictated by its ability to break through critical resistance levels and stabilize above significant support thresholds.
