Bitcoin price started a fresh decline from the $73,800 zone. BTC is consolidating and might struggle to stay above the $70,500 support.
- Bitcoin failed to stay above $72,500 and corrected gains.
- The price is trading below $72,000 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $71,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might extend losses if it stays below the $71,500 and $72,000 levels.
Bitcoin Price Dips Again
Bitcoin price failed to stay above the $72,500 resistance zone. BTC formed a top near $73,800 and started a fresh decline. There was a move below the $72,500 level.
The price dipped below the $71,500 and $71,200 levels. A low was formed at $70,517, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $73,800 swing high to the $70,517 low.
Bitcoin is now trading below $72,000 and the 100 hourly simple moving average. If the price remains stable above $70,500, it could attempt a fresh increase. Immediate resistance is near the $71,500 level. There is also a connecting bearish trend line forming with resistance at $71,450 on the hourly chart of the BTC/USD pair.
The first key resistance is near the $72,000 level. A close above the $72,000 resistance might send the price further higher. In the stated case, the price could rise and test the $72,500 resistance. Any more gains might send the price toward the $73,200 level. The next barrier for the bulls could be $74,000.
Downside Continuation In BTC?
If Bitcoin fails to rise above the $72,000 resistance zone, it could start another decline. Immediate support is near the $70,800 level.
The first major support is near the $70,500 level. The next support is now near the $70,000 zone. Any more losses might send the price toward the $69,200 support in the near term. The main support now sits at $68,800, below which BTC might struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $70,500, followed by $70,000.
Major Resistance Levels – $71,500 and $72,000.
