Bitcoin is exhibiting bearish indications as it faces resistance at $72,000. On the daily chart, BTC/USD is following a descending channel with resistance at $66,250. The price has fallen below the 50-day simple moving average (blue), entering a bearish zone.
Bitcoin’s price is currently suggesting a potential decline below $66,000, with the possibility of revisiting the $60,300 support zone.
In the previous analysis, it was noted that Bitcoin failed to surpass the $72,000 resistance zone. It formed a double-top pattern near this level and began a new downward trend. The price dropped below the $70,000 and $68,500 support levels.
Furthermore, it fell below the 23.6% Fibonacci retracement level of the main upward move from the $56,712 swing low to the $71,922 high. Over the past few days, the bulls have struggled to defend the crucial support at $66,500.
The daily chart for Bitcoin shows that the price has settled below the 50-day simple moving average, indicating a short-term bearish trend. Additionally, it is following a declining channel with resistance at $66,250. Notably, Bitcoin has faced difficulties while Ethereum has remained stable and even recovered after the SEC closed its investigation on ETH as a security.
These bearish factors suggest a high likelihood of further declines below $65,000. The first major support level is around $64,300, which is close to the 50% Fibonacci retracement level of the main upward move.
If the bulls fail to protect the $64,300 support level, a larger decline may occur, potentially leading the price towards the $60,300 support level. There is intermediate support around the $62,520 level.
On the other hand, if Bitcoin manages to stay above $64,300, it could make an attempt at a fresh increase. Immediate resistance levels are located at the $66,250 zone and the channel’s trend line. The first major resistance level is forming near $67,200. If the price breaks above this resistance, it could trigger a decent upward movement.
The next significant resistance level is at $68,500, surpassing which the price could gain bullish momentum. In such a scenario, the bulls might even target the $70,000 region. Further gains may lead the price towards the main hurdle at $72,000.
Overall, Bitcoin is currently indicating a potential decline below $66,000 and the 50-day simple moving average. There is a risk of further losses below the $65,000 and $64,300 support levels in the coming days.