Bitcoin Price Rally Slows Down, Market Prepares for Potential Decline

Bitcoin's recent surge is losing momentum, struggling to sustain above the $70,500 mark. Currently, BTC is consolidating and may drop below the $68,500 threshold.

Key Takeaways

Bitcoin showed significant recovery beyond the $68,500 point.
The current BTC trading price is above $68,650 and the 100-hourly simple moving average.
A crucial declining channel, or a potential bullish flag, is forming with support at $68,400 on the hourly BTC/USD chart (data sourced from Kraken).
A decline may occur if trading dips below the $68,400 and $68,000 levels.

Bitcoin Price Breakdown

Market Sentiment: Bitcoin Faces Resistance

Bitcoin's price maintained an upward trend, surpassing the $68,800 benchmark. The cryptocurrency climbed above key resistance levels of $69,500 and $70,000.

The buyers managed to push the price beyond the 61.8% Fibonacci retracement level from the peak of $74,062 down to the low of $65,645. However, selling pressure remains strong near the $71,200 level, causing Bitcoin to reverse and start a downward trend below $70,000.

Currently, Bitcoin trades above $68,800 and the 100-hourly simple moving average, with a crucial declining channel or a potential bullish flag developing. Support is notable at $68,400 on the hourly BTC/USD graph.

Bitcoin Price
Source: BTCUSD on TradingView.com

If Bitcoin maintains stability above $68,400, it may see another rise attempt. The immediate resistance level stands at $70,000, with the first significant resistance nearby at $70,500. A solid close above $70,500 could propel the price upwards, potentially testing the $71,200 resistance. Should the upward momentum continue, Bitcoin might even reach the $72,000 mark, corresponding to the 76.4% Fibonacci retracement level from the decline between $74,062 and $65,646. The next obstacle for bulls could be at $72,650.

Could Bitcoin Experience More Downside?

If Bitcoin fails to breach the $70,500 resistance zone, it may initiate a new downward trend. The immediate support level is around $68,800, followed by a major support point at $68,400.

Further declines could see Bitcoin testing the $68,000 level. Persistent losses may bring the price down towards the $67,250 support level in the short term. The main support sits at $66,500, beneath which BTC could face difficulties in regaining traction shortly.

Technical Indicators

Hourly MACD: The MACD is currently gaining traction in the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now below the 50 mark.
Major Support Levels: $68,400, followed by $68,000.
Major Resistance Levels: $70,500 and $71,200.