Bitcoin consolidates losses, why holding 100 SMA is the key


Bitcoin prices began to correct downward, and the exchange rate against the U.S. dollar was below $65,000. BTC must climb above the 100-hour moving average and above $66,500 to start a new rise.

  • Bitcoin started a downward correction below 66,000 USD and 65,000 USD.
  • The price is now below $66,000 and the 100-hour simple moving average.
  • A key contracting triangle was formed on the hourly chart of the BTC/USD currency pair, with resistance at around 65,200 USD (data feed from Kraken).
  • If it clearly breaks the 66,000 USD and 100-hour moving average, the currency pair may start a new rise.

Bitcoin price consolidates below $66,000

Bitcoin price starts to correct downward Pivot level of 66,000 USDBTC broke through the USD 65,500 support level and the 100-hour simple moving average and entered the short-term bearish zone.

It clearly fell below the support level of $65,000, and the price even soared below $64,000. Before the price corrected higher, a low was formed near $62,700. The resistance level of $64,000 was broken.

Bitcoin climbed above the 23.6% Fibonacci retracement of the key decline, falling from a swing high of $68,990 to a low of $62,700. On the bright side, immediate resistance is near $65,200. On the hourly chart of the BTC/USD currency pair, there is also a key contracting triangle formed, and the resistance is near 65,200 USD.

Source: BTCUSD on TradingView.com

The first major resistance is near $65,850. It is close to the 50% Fibonacci retracement of the key decline, falling from a swing high of $68,990 to a low of $62,700.The main resistance is forming near $66,500, while 100 hours SMA.

A clear break of the $66,500 resistance level may open the door for new gains. The next major resistance is near the $67,500 level.

BTC loses more?

If Bitcoin fails to break the resistance zone of $66,500, it may continue its downward correction. The immediate support for the downside is around $64,200.

The first major support level is now formed near $63,500. The next major support is near the $62,850 level. Below this level, the price may even fall below the $62,000 support zone.

Technical index:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

The main support level is $63,500, followed by $62,500.

The main resistance levels – 65,200 USD, 65,800 USD and 66,500 USD.



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