Bitcoin Price Faces Challenges in Attempt to Regain Lost Ground
Bitcoin price is currently in a consolidation phase above the $64,000 mark, with potential for a recovery if it surpasses the $65,650 resistance level. The cryptocurrency initiated a minor uptrend above $65,000 but is still trading below $65,500 and the 100-hourly Simple Moving Average. An hourly chart of the BTC/USD pair from Kraken indicates the formation of a short-term contracting triangle with resistance at $65,400. A breakout above $65,400 and $65,650 could trigger a recovery wave.
Bitcoin faced a decline below $65,000, testing the $64,000 support before correcting losses. Despite a minor recovery above $64,500 and surpassing the 23.6% Fibonacci retracement level of the recent drop, resistance persists near $65,500. The cryptocurrency remains below the 100-hourly Simple Moving Average and is forming a contracting triangle with resistance at $65,400 on the hourly chart.
On the upside, Bitcoin encounters resistance at $65,400, the triangle trend line, and potentially $65,650 or the 50% Fibonacci retracement level. A clear move above $66,000 could signal a sustained increase, aiming for the $66,550 and $67,500 resistance levels in the short term. Failure to breach the $65,650 resistance may lead to another decline, finding initial support near $64,850, followed by $64,400 and $64,000. Further losses could target the $63,200 support zone.
Technical indicators show the Hourly MACD losing momentum in the bearish zone, while the Hourly RSI for BTC/USD is above the 50 level. Major support levels include $64,400 and $64,000, with major resistance levels at $65,400 and $65,650.
In conclusion, Bitcoin’s price recovery faces hurdles at key resistance levels, with the potential for further declines if critical support levels are breached. Traders are advised to monitor price movements closely and conduct thorough research before making investment decisions. The cryptocurrency market remains volatile, and caution is advised when navigating these fluctuations.
