Bitcoin Price Decline: Could This Mark the Beginning of a New Downtrend?

Bitcoin’s price has faced challenges below the $68,500 resistance level, leading to a corrective wave that could potentially push it below the $65,500 support zone. The current trading scenario sees Bitcoin below $66,500 and the 100 hourly Simple Moving Average, with a notable break below a crucial bullish trend line at $67,200 on the BTC/USD hourly chart sourced from Kraken. There are concerns that the pair might continue its downward trajectory, potentially breaching the $65,500 support zone.

The failure to sustain levels above $66,500 and $67,000 resistance marks a bearish turn for Bitcoin’s price, as it slipped below $66,000 and entered a short-term bearish zone. The breach of the bullish trend line at $67,200 led to a dip below $65,500, forming a low at $65,458. Currently, the price is consolidating losses and trading under the 23.6% Fib retracement level from the recent swing high of $68,240 to the low of $65,458.

Bitcoin’s price action now positions it below $66,500 and the 100 hourly Simple Moving Average, with potential resistance near $66,150. A significant hurdle lies at $66,800, followed by the 50% Fib retracement level from the swing high to the low. A clear break above $66,800 could signal a fresh uptrend in the near term.

Looking ahead, if Bitcoin fails to surpass the $67,200 resistance level, further downside movement is anticipated. Immediate support rests near $65,500, with major support at $65,080 and subsequent levels near $64,200. Further declines could push the price towards the $63,500 support zone.

Technical indicators suggest a bearish momentum, with the hourly MACD gaining pace in the bearish region and the hourly RSI for BTC/USD below the 50 level. Key support levels include $65,500 and $65,000, while major resistance levels stand at $67,200 and $68,000. The next significant resistance levels to watch for are $67,100 and $67,200, with a breakthrough potentially leading to a test of the $68,000 resistance.

In conclusion, Bitcoin’s price faces a critical juncture as it grapples with resistance levels and potential downside risks. Traders and investors are closely monitoring key support and resistance zones to gauge the cryptocurrency’s next moves in the volatile market environment.