Bitcoin Price Declines Further: Are Larger Losses Ahead?

Bitcoin has experienced a sharp decline from levels exceeding $72,000. Currently, BTC is consolidating and risks further declines unless it successfully closes above $70,000.

Key Takeaways

Bitcoin's price has dropped sharply below $71,200 and $70,500, entering a bearish phase.
Currently trading below both $70,500 and the 100-hour simple moving average.
A bearish trend line has formed with resistance at $69,200 on the hourly chart for the BTC/USD pair.
The possibility of continued decline exists if Bitcoin remains below the $69,200 and $70,000 thresholds.

Bitcoin Price Sinks Deeper

Further Decline in Bitcoin Price

Bitcoin's price has experienced a significant drop, moving from above $72,000 to below the critical levels of $71,200 and $70,000, thus entering a short-term bearish area. The selling pressure from bears has pushed Bitcoin's price below $69,500, leading to a downward swing towards $67,500. A low was established at $67,343, with Bitcoin now consolidating its losses.

Recently, there was a slight recovery past the $68,000 mark; however, the price remains significantly below the 23.6% Fibonacci retracement level, calculated from the recent swing high of $75,999 to the low at $67,343. Currently, Bitcoin trades below $70,000 and the 100-hour simple moving average. Additionally, a bearish trend line, exhibiting resistance at $69,200, has formed on the hourly chart for the BTC/USD pair.

If Bitcoin can maintain stability above $68,000, it may attempt a rebound. Immediate resistance can be found around the $69,000 level, with key resistance near $69,200 and the identified trend line. A close above this resistance may encourage a further price increase.

Bitcoin Price Chart
Source: BTCUSD on TradingView.com

In this scenario, Bitcoin could rally to test the resistance level at $70,000. Additional gains might push the price towards the $71,650 level or the 50% Fibonacci retracement from the drop, which began from the $75,999 swing high to the $67,343 low. The next significant barrier for bullish traders is at $72,800.

Potential for Further Downtrends in Bitcoin

If Bitcoin cannot break above the $70,000 resistance zone, it may initiate another decline. The immediate support level lies near $68,000, with the primary support being around $67,250.

The next level of support has moved to the $66,500 zone. Even further losses could lead Bitcoin towards the key support level of $65,000 in the short term. The main level of support now stands at $63,500, below which Bitcoin may encounter significant recovery challenges.

Technical Indicators

Hourly MACD: The MACD is gaining momentum within the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently positioned below the 50 level.

Support and Resistance Levels

Major Support Levels: $68,000, followed by $67,250.
Major Resistance Levels: $69,200 and $70,000.