Bitcoin’s price dipped below the $70,000 mark, causing concern among investors. Currently testing the $68,800 support level, the cryptocurrency may start a new rally as long as it doesn’t fall below this critical point. However, if this support level is breached, a more severe downtrend could occur. Bitcoin’s future largely hinges on whether this support level can hold.
Bitcoin Struggles to Stay Above $70,000
In recent days, Bitcoin has fought to maintain a position above the $71,500 level. After hitting a peak of $71,896, Bitcoin entered a downward correction phase. Now, all eyes are on the $68,800 support zone, where bulls are active and attempting to push the price back up.
Currently, Bitcoin is trading above the $69,000 mark, facing significant resistance at $69,650. The first major resistance is at $70,000. The hourly chart of the BTC/USD pair shows a bearish trend line forming with resistance around $70,000.
If Bitcoin can surpass this trend line, the next major resistance will be at $70,500. A clear move above $70,500 could drive the price higher, potentially testing the $71,200 resistance. Should the bulls continue to push the price up, a move towards the $71,800 resistance area is possible. Further gains could see BTC reaching the $72,500 resistance.
Potential Downward Break for Bitcoin
If Bitcoin closes below the $68,800 support, the downtrend might accelerate. Staying below this level could trigger panic among investors and increase selling pressure. In such a scenario, Bitcoin could retreat to the $66,000 levels.
Initially, a downward move would find support at $69,000, a critical point from which Bitcoin’s recent upward movement began. If this support breaks, the next significant support is at $68,800. The importance of this level stems from its role in initiating BTC’s upward momentum.
Further down, crucial supports lie at $67,420 and $66,046. Should BTC fall below these levels, losses could extend towards the $66,000 support area.
Technical Indicators Analysis
Looking at technical indicators, the MACD on the hourly chart is currently losing momentum in the bearish zone. The MACD is a key tool for identifying price momentum and potential reversal points. A weakening MACD in the bearish zone suggests continued downward movement.
Another important indicator, the RSI (Relative Strength Index) for the BTC/USD pair, is currently below the 50 level. An RSI below 50 indicates stronger selling pressure and a bearish trend. The RSI provides signals of overbought (above 70) and oversold (below 30) conditions, and its current position below 50 suggests a bearish outlook.
This article does not constitute investment advice. It has been created with the help of artificial intelligence, drawing on various sources.
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