Bitcoin Price Sees a Recovery, But Weak Momentum Limits Potential Gains

Bitcoin has recently witnessed a recovery above the $67,000 mark. However, BTC seems to be consolidating just below the $68,500 threshold and may find it challenging to push higher.

Key Takeaways

Bitcoin began a recovery phase, rising above $67,000 and $67,500.
Currently, the price is maintained above $67,500 and the 100 hourly simple moving average.
A bearish trend line was broken, showing resistance at $67,350 on the hourly chart for the BTC/USD pair (using data from Kraken).
If Bitcoin remains below the $68,500 and $68,800 levels, it may face a decline.

Bitcoin Price Tightens Range

Bitcoin Price Recovery Efforts

Bitcoin initially extended its losses, dipping into the $65,000 area. However, BTC established a base above $65,000 and has recently begun a corrective upward movement above $66,000. The price has successfully moved past the $67,000 resistance zone. A significant break occurred above a bearish trend line with resistance at $67,350 on the hourly chart for BTC/USD. Moreover, Bitcoin managed to surpass the 38.2% Fibonacci retracement level from its earlier drop, which ranged from the $71,985 high to the $65,030 low.

Currently, Bitcoin is trading above $67,500 and the 100 hourly simple moving average. If the price stabilizes above $67,200, it may attempt to increase further. The immediate resistance is positioned near the $68,500 level, coinciding with the 50% Fibonacci retracement level of the earlier aforementioned downward swing.

Bitcoin Price Source: BTCUSD on TradingView.com

The primary resistance level is close to $68,800. A closure above this mark might propel the price higher. In this scenario, BTC could test the $69,250 resistance level. Further gains may push the price toward the $69,500 mark, with $70,000 serving as the next target for bullish traders.

Potential Decline for BTC?

Should Bitcoin fail to exceed the $68,500 resistance area, it may initiate another decline. Immediate support stands at approximately $67,200, while the first major support level is around $67,000. Should the price decline further, the next level of support is near $66,200. Any substantial losses could lead Bitcoin towards the $65,500 support level in the near future. The key support zone lies at $65,000, below which BTC may struggle to recover effectively.

Technical Indicators

Hourly MACD: The MACD shows a loss of momentum within the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is presently above the 50 mark.
Major Support Levels: $67,000, followed by $65,000.
Major Resistance Levels: $68,500 and $68,800.

This analysis provides a clear snapshot of Bitcoin’s current position, outlining critical resistance and support levels that traders should monitor closely.