Bitcoin’s recent performance has raised concerns among investors as the price failed to maintain its footing above the critical support level of $66,000. Instead, the cryptocurrency has entered a downward spiral, consolidating losses amid growing market resistance.
After falling below $66,000, Bitcoin traded downwards, breaking the psychological barrier of $65,000 and even dipping below $64,000. The lowest recorded point was $63,351, marking a worrisome trend for holders of the asset. Although there has been a slight recovery above $64,000, the price remains significantly below the 23.6% Fibonacci retracement level associated with the recent decline from the swing high of $68,652 to the low point of $63,351.
In its current state, Bitcoin is trading below the 100-hourly simple moving average, indicating a bearish sentiment among traders. A bearish trend line has also formed, with resistance identified at $66,800 on the hourly chart of the BTC/USD pair, sourced from Kraken.
Currently, Bitcoin faces immediate resistance near the $64,600 level, with a critical resistance threshold at $65,250. A breakout above this level could signal a potential rally, allowing the price to test previous resistance points at $66,000 or align with the 50% Fibonacci retracement level of the recent price drop.
Should gains materialize, Bitcoin might aim for the $66,800 resistance point, with additional barriers at $67,500 and $67,700. However, if Bitcoin does not manage to surpass the $65,250 resistance zone, it could trigger another wave of decline. The immediate support is positioned at $64,000, while substantial support levels lie at $63,500 and $63,200.
Market analysts are particularly cautious, noting that a sustained drop could see Bitcoin tumbling down to $62,650 and potentially testing the critical support level at $62,000. Falling below this threshold could hinder recovery efforts in the near term.
Key technical indicators are reflecting this bearish outlook. The hourly MACD has gained momentum in the negative zone, signaling rising selling pressure, while the hourly Relative Strength Index (RSI) has dropped below the 50 level, reinforcing the prevailing bearish sentiment.
As the market evolves, traders are keeping a close eye on Bitcoin’s performance, navigating the challenges posed by its recent declines and resistance levels. The near future will be pivotal in determining whether Bitcoin can regain its footing or if further declines await.
