Bitcoin‘s price has fallen below the $70,000 mark, causing concern among investors. The digital currency is currently testing the $68,800 support level, a critical threshold that could determine its near-term trajectory. If Bitcoin holds above this support, a potential rebound may be on the horizon. However, breaching this level might trigger a significant downward trend, adding further pressure on the market.
Struggles to Maintain $70,000 Level
In recent days, Bitcoin faced challenges staying above $71,500. After peaking at $71,896, it entered a correction phase, putting the $68,800 support zone in the spotlight. Bulls are actively defending this level, attempting to drive the price upward.
Currently trading above $69,000, Bitcoin encounters notable resistance at $69,650. The first major resistance is at $70,000, where the BTC/USD pair’s hourly chart shows a downtrend line forming. Surpassing this line could push Bitcoin to test resistance at $70,500, potentially leading to further gains towards $71,200 and beyond.
Could Bitcoin See a Downward Break?
Should Bitcoin close below the $68,800 support, it may accelerate its downtrend. Failure to hold this level could trigger panic among investors and increase selling pressure, potentially causing Bitcoin to retreat to $66,000.
The nearest support point in case of a downward move is at $69,000, a critical level from where the recent upward movement began. If broken, the next significant support is at $68,800. Further down, crucial supports are at $67,420 and $66,046. Falling below these levels could lead to more losses towards the $66,000 support zone.
Key Indicators to Watch
Investors should keep an eye on technical indicators:
- The MACD on the hourly chart is losing momentum in the bearish zone, suggesting continued downward movement.
- The RSI for the BTC/USD pair is below 50, indicating stronger sellers and a bearish market trend.
Analyzing these indicators can provide valuable insights into potential turning points and momentum shifts in Bitcoin’s price movement.
In conclusion, Bitcoin’s price trajectory heavily relies on whether it can maintain support above $68,800. Market participants are advised to monitor these levels closely to anticipate potential market shifts.