Bitcoin Dips Again: Temporary Setback or Buying Opportunity?

As a researcher with extensive experience in cryptocurrency market analysis, I have been closely monitoring the Bitcoin price action. Based on my observation, it appears that Bitcoin is currently undergoing a correction after facing resistance at the $71,650 level. The downside correction has resulted in a break below the key bullish trend line and the 23.6% Fib retracement level.

As a crypto investor, I’ve noticed that Bitcoin‘s price has begun to correct downward after hitting the resistance at $71,650. Currently, Bitcoin is in the process of consolidation and may continue to drop, potentially reaching the support level at $69,500.

    Bitcoin struggled above $71,500 and started a downside correction.
    The price is trading above $70,000 and the 100 hourly Simple moving average.
    There was a break below a key bullish trend line with support at $70,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair could decline further if there is a move below the $70,000 level.

Bitcoin Price Starts Correction

As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin’s price has surpassed the $70,000 mark and continued to climb. Specifically, it managed to break through the resistance levels at $70,500 and $71,200. The bullish momentum carried on, pushing the price further into positive territory. However, a noteworthy observation is that bearish forces emerged around the $71,650 zone.

At a peak of $71,682, a new high was established, but then the price began to correct downward. The correction saw the price fall beneath the 23.6% Fibonacci retracement mark – which is calculated based on the upward movement from the low of $67,285 to the high of $71,682. Additionally, there was a significant break below a notable trendline providing support at $70,650, as depicted on the hourly chart for BTC/USD pair.

The cost previously hit the $70,200 mark as a potential support before surging above it. Currently, Bitcoin hovers around $70,000 and above its 100-hour Simple Moving Average. On the positive side, the price encounters resistance at approximately $70,800.

Bitcoin Dips Again: Temporary Setback or Buying Opportunity?

In the given context,

More Downsides In BTC?

Should Bitcoin be unable to surpass the $71,200 barrier, it may head in the opposite direction instead. The nearest support lies around the $70,200 mark.

$70,000 is the initial significant resistance point. The next potential support level is emerging around $69,500 or at the 50% Fibonacci retracement mark of the price surge from the prior low of $67,285 to the high of $71,682. Any further declines could push the price towards the nearby support area of $68,500 in the short term.

Technical indicators:

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

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

Major Support Levels – $70,200, followed by $70,000.

Major Resistance Levels – $71,200, and $71,650.

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2024-06-07 06:04