Bitcoin’s recent price movements indicate a troubling trend for investors. After failing to maintain stability above the $70,000 mark, Bitcoin has experienced a noticeable decline, now trading below $68,800. The cryptocurrency is showing signs of further loss as it hovers around the $68,400 level, near the 100-hourly simple moving average.
The downward momentum became evident with a breach of a bullish trend line that previously provided support at $69,500 on the hourly chart for the BTC/USD pair, sourced from Kraken. The breach of this key indicator set off a domino effect, driving the price below significant psychological levels, including the $69,200 support zone and notably dipping under $69,000.
Analysis reveals that Bitcoin’s current dip falls below the 38.2% Fibonacci retracement level derived from the recent upward trajectory that took the price from a low of $65,072 to a high of $70,935. If Bitcoin trades below $68,400, analysts believe it may trigger additional downward movement, particularly if it breaches the critical $68,000 support barrier.
While immediate resistance sits close to $68,800, a significant hurdle remains at the $69,500 level. Should Bitcoin manage to close above this resistance, it could potentially pave the way for a recovery towards $70,000. A successful breach of this level may open the door for further gains towards $70,500 and even higher targets like $72,000 and $72,500.
Conversely, if Bitcoin continues to struggle beneath the $69,500 resistance, it risks initiating another round of declines. Immediate support is identified around the $68,200 level, while the first major support sits at $68,000—coinciding with the 50% Fibonacci retracement level for the recent upward movement. Should the price continue on its current trajectory, the next noteworthy support area is pegged at approximately $67,350. Further losses could extend towards $66,500, a crucial juncture below which Bitcoin may find it increasingly challenging to recover.
Technical indicators illustrate a bearish trend, with the hourly MACD gaining momentum in the negative zone, and the Relative Strength Index (RSI) for BTC/USD sitting below the 50 mark. As the market watches to see whether Bitcoin can regain strength or faces additional declines, investors remain cautious amidst the ongoing fluctuations.
