Bitcoin price failed to extend its recovery wave from the $70,500 area. BTC is now consolidating and could drop further below $68,500.
- Bitcoin started a decent recovery wave from the $68,500 area.
- The price is trading above $68,650 and 100 simple moving averages per hour.
- On the hourly chart of the BTC/USD pair, there is a key descending channel or a possible top flag with support at $68,400 (data provided by Kraken).
- If it trades above the $68,400 and $68,000 levels, the pair may decline again.
Bitcoin price faces key resistance
Bitcoin price remained high and extended its gains above the $68,800 level. BTC broke above the $69,500 and $70,000 resistance levels.
Bulls pushed the price above the 61.8% Fib retracement level of $74,062 to $65,645. However, bears are still active near $71,200. The price failed to extend the gains and started a bearish wave at $70,000.
Bitcoin is currently trading above $68,800 and below the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, there is also a key descending channel or potential upside flag with support at $68,400.
If the price remains stable above $68,400, it may attempt a new rally. Immediate resistance is near the $70,000 level. The first key resistance is near the $70,500 level. A close to the $70,500 resistance could push the price even higher. In this case, the price may increase and test the resistance of $71,200. Any further gains could send the price towards the $72,000 level or the 76.4% Fib retracement level of the move down from $74,062 to $65,646. The next hurdle for bulls could be $72,650.
More downside to BTC?
If Bitcoin fails to break above the $70,500 resistance zone, it may start another decline. Immediate support is near the $68,800 level. The first major support is near the $68,400 level.
The next support is now near the $68,000 area. Any further losses could send the price to the $67,250 support in the near term. Key support is now at $66,500, below which BTC may recover in the near term.
Technical indicators:
Hourly MACD – MACD is currently accelerating in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
The main support level is $68,400, followed by $68,000.
Key resistance levels are $70,500 and $71,200.
