Bitcoin price started a downside correction from well above $64,000 against the US Dollar. BTC could extend its decline below the $60,000 support level in the near term.
- Bitcoin failed to stay above $62,000 and extended its decline.
- The price is now trading below $62,000 and the 100 hourly simple moving average.
- There is a crucial bearish trend line forming with resistance near $62,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend its decline below the $60,500 and $60,000 support levels.
Bitcoin price is still at risk
Bitcoin price attempted to break above the $64,000 resistance level. However, BTC failed to gain traction and started a new low. The bears gained strength and managed to push the price below the $62,500 support area.
The price even settled below the $62,000 level and the 100 hourly simple moving average. A bottom was formed near $59,824 and the price is now struggling to stay in positive territory. It is testing the 23.6% Fib retracement level of the recent decline from the $63,700 swing high to $59,824 low.
It is currently facing resistance near the $60,800 and $61,000 levels. The first major resistance is near the $61,750 level and the hourly 100 SMA. The 50% Fib retracement level of the recent decline from the $63,700 swing high to $59,824 is also near $61,800.
Source: BTCUSD on TradingView.com
The major breakout resistance is now forming near the $62,000 level. There is also a crucial bearish trend line forming with resistance near $62,300 on the hourly chart of the BTC/USD pair. A clear break above the trend line resistance and then $62,500 may open the doors for a move towards the $63,200 level. The next major resistance is near the $64,000 level.
More losses in bitcoin?
If Bitcoin fails to clear the $62,000 resistance area, it may continue to decline. There is immediate support on the downside near the $60,000 level.
The first major support is now forming near the $59,500 level. A break below the $59,500 support level could push the price towards the $58,000 support area in the near term.
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $60,000, followed by $59,500.
Key resistance levels – $61,200, $62,000 and $62,300.