Bitcoin Battles Bears as Price Slips Below Key Support
Bitcoin's recent market performance has seen a significant correction, with the cryptocurrency failing to maintain its footing above the $68,000 threshold. The digital asset is currently consolidating losses, leaving investors watching closely as bears tighten their grip on the market.
Retreat from Recent Highs
After a period of struggle, Bitcoin's price dipped from the $68,000 zone, initiating a fresh decline that saw it trade below the $67,500 support. The correction continued past the $67,000 mark and even fell below the 76.4% Fibonacci retracement level of its previous upward move from $65,072 to $70,935. While the price found temporary support near $66,000, it remains in a precarious position, trading below the $67,200 level and its 100-hourly simple moving average. A declining channel with resistance at $68,000 is clearly forming on the hourly charts, indicating potential for further downward movement if this critical resistance isn't overcome.
Critical Support and Resistance Levels
For Bitcoin to reverse its current trend, it must find stability above $66,000. Immediate resistance is observed near $67,350, with a more significant barrier looming at $68,000. A decisive break above this $68,000 resistance could pave the way for a rally towards $68,800 and potentially $69,500, with further targets at $70,000 and $70,500. However, failure to surmount the $68,000 resistance could trigger another wave of declines. Key support levels to watch include $66,000 (which also aligns with the 83.2% Fib retracement of the last major upward move) and $65,500. A breach of these levels could see Bitcoin testing $64,200, with the main support positioned at $63,500. Technical indicators reinforce this bearish sentiment, as the hourly MACD shows increasing bearish momentum and the Relative Strength Index (RSI) for BTC/USD currently sits below the 50 level.
