As a seasoned researcher with years of experience in the cryptocurrency market, I have witnessed Bitcoin’s volatility and resilience firsthand. While the current correction may seem concerning to some, it is important to remember that such corrections are a normal part of any bull market cycle.
The price of Bitcoin found it tough to move further up past the $64,400 mark. Currently, Bitcoin is experiencing a correction in its gains and is hovering close to the $62,500 area as a potential support level.
- Bitcoin is holding gains above the $62,500 zone.
The price is trading above $62,500 and the 100 hourly Simple moving average.
There was a break below a connecting bullish trend line with support at $63,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase unless there is a close below the $61,650 zone.
Bitcoin Price Corrects Gains
The cost of a single Bitcoin climbed beyond the $63,500 mark and managed to surpass the previous resistance at $64,200. Yet, sellers showed their strength when the price dipped below $64,500.
Initially, it reached a peak of $64,419, but now it’s experiencing a correction in its gains. A drop occurred below both the $64,000 and $63,500 thresholds. Furthermore, the price fell below the 50% Fibonacci retracement line of the upward trend that started at the $61,723 low point and peaked at $64,41.
In addition, a drop occurred below a long-term bullish trend line that offered support at $63,000 on the Bitcoin/USD hourly chart. Currently, the BTC price is trading above $62,500 and is also above the 100-hour Simple Moving Average. Moreover, the bulls are actively defending the 76.4% Fibonacci retracement level stemming from the price swing low at $61,723 to the high of $64,41.
Positively speaking, there’s a possibility that the price may encounter a barrier around $63,000. Initially, a significant resistance lies near $63,200. A decisive break above this $63,200 barrier could potentially propel the price upward. Subsequently, another potential resistance might be found at $64,000.
If the price breaks through the $64,000 barrier, it could potentially propel further growth. In this scenario, the price may climb and challenge the $64,400 resistance point. Further increases might push the price towards the $65,500 resistance area.
More Losses In BTC?
If Bitcoin doesn’t manage to break through the $63,200 barrier, there’s a possibility of another drop in its price. The lowest point it might stabilize at if it does fall is approximately $62,500.
The primary reinforcement lies around $61,750. Currently, another support area can be found close to the $61,200 region. If there are further drops, the price may move towards the nearby $60,000 support level in the short term.
Technical indicators:
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.
Major Support Levels – $62,500, followed by $61,750.
Major Resistance Levels – $63,200, and $64,000.
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2024-10-08 05:46