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Bitcoin Price Analysis: BTC Could Rally Unless This Support Gives Way

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  • Bitcoin price started a downside correction from the $65,500 zone against the US Dollar.
  • The price is now trading above $62,000 and the 55 simple moving average (4 hours).
  • There was a break below a key bullish trend line with support at $63,000 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could start a fresh increase if it stays above the $61,000 support zone.

Bitcoin price is correcting lower below $63,000 against the US Dollar. BTC might eye another increase if the bulls remain active above the $61,000 zone.

Bitcoin Price Analysis

Bitcoin price extended its increase above the $63,500 level and rallied toward the $65,500 resistance zone. However, the bears remained active near the $65,500 zone.

A high was formed near $65,523 before the price started a downside correction. There was a clear move below the $64,000 and $63,000 levels. There was a break below a key bullish trend line with support at $63,000 on the 4-hour chart of the BTC/USD pair.

The bears were able to push the price below the 23.6% Fib retracement level of the upward move from the $56,500 swing low to the $65,523 high. The price even spiked below $62,500.

Bitcoin is now trading above $62,000 and the 55 simple moving average (4 hours). Immediate resistance on the upside is near the $63,050 level. The next major resistance might be near the $64,000 zone. A clear move above the $64,000 level might send the price toward $65,500, above which the price might rise toward the $67,500 level.

Any more gains might push the price toward the $70,000 zone. If there is no upside break, the price might continue to decline below the $62,000 level.

The first major support is $61,000. The next key support is near the $60,000 level or the 61.8% Fib retracement level of the upward move from the $56,500 swing low to the $65,523 high, below which the price might accelerate lower. In the stated case, the price could decline toward the $58,500 level. Any more losses might send the price toward the $56,500 level.

Bitcoin Price
Bitcoin Price

Looking at the chart, Bitcoin price is clearly trading above $62,000 and the 55 simple moving average (4 hours). Overall, the price could start a fresh increase if it stays above the $61,000 support zone.

Technical Indicators

4 hours MACD – The MACD is now gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $62,000 and $61,000.

Key Resistance Levels – $63,000, $64,000, and $65,500.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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