Bitcoin‘s price has started a downward adjustment following its recent surge, indicating a potential correction phase. After approaching the resistance near $64,000, the cryptocurrency has been looking for solid support, with potential levels being around $59,250 or anchored by the 100-hour Simple Moving Average. The duration and extent of this correction phase are subjects of market speculation, while the digital currency sees a temporary pause in its upward trajectory.
BTC Struggles Below Key Resistance Levels
Bitcoin’s rally experienced a setback as its value dipped below $62,250, a key resistance area. Despite this, the cryptocurrency’s value is hovering above $60,000 and maintaining above the 100-hour Simple Moving Average. This downward price action is further confirmed by a breach of the support trend line at $62,850 on the hourly BTC/USD chart, indicating a potential bearish pattern.
Previously, Bitcoin had climbed past $63,200 and made an attempt to establish itself in the $64,000 zone. This peak, however, could not be sustained, and a downward correction ensued, with the highest recent level being recorded near the $64,000 mark. The fall below the $62,000 support signals the onset of this corrective trend.
Technical Indicators Hint at Continued Adjustment
The ongoing correction sees Bitcoin’s price floating above the $62,000 mark, but its inability to overcome the $62,850 resistance barrier suggests the possibility of a prolonged retraction. If the currency were to breach the $62,850 level, it might indicate a potential resurgence towards the $64,000 resistance. However, the technical analysis reveals a weakening momentum, as evidenced by the hourly Moving Average Convergence Divergence (MACD) and a Relative Strength Index (RSI) that has dropped below the midpoint of 50.
Currently, Bitcoin’s correction is in progress, with market watchers keenly observing which direction it will ultimately take. The $60,000 support level and consistency above the 100-hour Simple Moving Average provide some reassurance that the pullback could be contained. Conversely, a decisive move above the $62,850 resistance might signal a bullish reversal. Nonetheless, if Bitcoin closes below these support levels, the market might brace itself for further declines.
