Bitcoin price began a downward correction at the $71,650 resistance zone. BTC is currently consolidating and may correct towards the $69,500 support.
- Bitcoin struggled above $71,500 and began a downward correction.
- The price is trading above $70,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a break has occurred below the main bullish trendline with support at $70,650.
- A decline below the $70,000 level could lead the pair to fall further.
Bitcoin price adjustment begins
Bitcoin price continued its upward trend above the $70,000 level. BTC was able to move further into positive territory by clearing the $70,500 and $71,200 levels. However, the bears were active near the $71,650 area.
A high was formed at $71,682 and the price began a downward correction. Prices fell below the 23.6% Fib retracement level of the bullish wave from the $67,285 swing low to the $71,682 high. A break also occurred below the main bullish trendline with support at $70,650 on the hourly chart of the BTC/USD pair.
The price tested the $70,200 support area. Bitcoin is currently trading above $70,000 and the 100-hour simple moving average. On the other hand, the price is finding resistance near $70,800.
The first major resistance could be at $71,200. The next major resistance could be at $71,650. A clear break above the $71,650 resistance could push the price higher. If indicated, the price could move higher and test the $72,000 resistance. Any more gains could push BTC towards the $73,200 resistance.
Are there more downsides to BTC?
If Bitcoin fails to rise above the $71,200 resistance zone, it may continue to fall. Immediate support for the downside is near the $70,200 level.
The first major grant is $70,000. The next support is currently forming near the 50% Fib retracement level of the bullish wave from the low of $69,500 or $67,285 to the high of $71,682. More losses could lead the price towards the $68,500 support area in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $70,200, then $70,000.
Key resistance levels – $71,200 and $71,650.