Key Takeaways:
- Bitcoin reached an all-time high of $73,588 and is currently in a downward trend.
- BTC/USD is testing a major ascending channel with support at $67,200 on the daily chart.
- If it breaks above $65,000, the price may begin a downward correction towards $52,000.
New Delhi (CoinChapter.com) — Bitcoin price is correcting gains in the $73,500 region. BTC/USD is showing signs of depletion, but downside may be limited below $65,000.
Bitcoin Price Signals Pullback
In our last weekly analysis, we saw Bitcoin fluctuating above $60,000. BTC maintained a strong upward trend and continued to rise, breaking many obstacles near $68,000. It even broke above the $70,000 resistance and was trading at an all-time high.
A high was made near $73,588 and the bulls seem to be struggling to push the price towards $75,000. The price is now correcting gains below the $72,000 level.
It appears that a short-term high is forming on the daily chart. Today’s candle is signaling the exhaustion of the uptrend. Bitcoin price has fallen more than 7% and is below the $70,000 level, but is still well above the 50-day simple moving average (blue).
BTC is currently testing a major ascending channel with support at $67,200 on the daily chart. If a breakout occurs and a daily close occurs below the channel support, the price may extend its decline towards the $65,000 support.
The 23.6% Fib retracement level of the rise from the $38,572 swing low to the $73,588 high is also near the $65,350 area, acting as support. There could be a bigger decline if the bulls fail to protect the $65,000 support.
The first major support is currently forming at $55,000, near the 50-day simple moving average (blue). Key uptrend support for the current wave lies at $52,000, or the 61.8% Fib retracement level of the upward move from the $38,572 swing low to the $73,588 high. A decline below the $52,000 support could trigger a sharp bearish move.
A new increase in BTC?
Conversely, Bitcoin price could remain stable above the channel trendline support of $65,000 and start a new rally. Immediate resistance is near the $70,000 level. The first major resistance is near $72,000.
If the bulls push the price above the $72,000 resistance, it could lead to a decline towards the $73,500 level. The next major hurdle for the bulls could be near the $75,000 level. A daily close above the $75,000 resistance zone could open the door to the $80,000 resistance zone.
Overall, Bitcoin price is trending downward above $70,000. BTC/USD may see a short-term decline, but the bulls could remain active above $65,000 and the 50-day simple moving average (blue).