Bitcoin price extended gains above the $69,200 resistance zone. BTC is now correcting gains and trading near the $67,500 pivot level.
- Bitcoin struggled to test the $70,000 resistance zone and corrected some gains.
- The price is trading below $68,500 and the 100 hourly simple moving average.
- There was a break below the main contracting triangle with support at $68,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may begin a further increase unless there is a close below the $66,500 zone.
Bitcoin Price Drops to Support
Bitcoin price remained supported above the $66,500 zone. BTC started another small increase above the $68,500 resistance zone. The bulls managed to surpass the $69,200 barrier.
However, there was no test of the $70,000 resistance zone. A rally was formed near $69,428 and the price is now correcting gains. There was a small decline below the $68,000 level. There was a break below the main contracting triangle with support at $68,500 on the hourly chart of the BTC/USD pair.
The pair tested the $66,500 support. It is now consolidating above the 23.6% Fibonacci retracement level of the downward move from the $69,428 high to $66,564 low.
Bitcoin price is now trading below $68,500 and the 100 hour simple moving average. On the upside, the price may face resistance near the $68,000 level or the 50% Fibonacci retracement level of the downward movement from the $69,428 swing high to $66,564 low.
The first key resistance is near the $68,750 level. A clear move above the $68,750 resistance could push the price higher. The next key resistance could be at $69,200. A close above the $69,200 resistance could initiate further gains. In this case, the price could rise and test the $70,000 resistance level. Any further gains could send the price towards the $70,500 resistance level.
More losses in BTC?
If Bitcoin fails to rise above the $68,000 resistance zone, it could begin another decline. Immediate downside support is near the $67,000 level.
The first major support is near the $66,800 level. The next support is now near the $66,500 zone. Further losses could send the price towards the $65,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $66,800, followed by $66,500.
Main resistance levels – $68,000 and $68,500.