Bitcoin (BTC) failed to maintain the $70,000 level and has fallen below $69,000, breaking down through the upward trend line on the hourly chart, while the downward momentum has strengthened across major technical indicators, increasing the possibility of further declines around $66,500.
What happened: BTC fell below the key support level.
The decline began after BTC failed to continue the rally after hitting a peak of $70,935. It subsequently broke down below the $69,200 support zone, and the 38.2% Fibonacci retracement level of the upward wave that started from the swing low of $65,072 was also breached. The support of the upward trend line that was located around $69,500 on the hourly BTC/USD chart was also broken.
Currently, BTC is trading around $68,400 and is hovering near the 100-hour simple moving average. Short-term resistance is at $68,800, with $69,500 and $70,000 serving as the next major resistance levels.
If the price settles above $69,500, it could test $70,500 and potentially target the $72,000 to $72,500 range. Conversely, if it fails to reclaim this level, the price may drop towards the 50% Fibonacci retracement level around $68,000.
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Why it matters: Reasons why the bearish signal is strengthening
The hourly MACD is increasing its downward momentum in the bearish phase, and the RSI has fallen below 50. Both indicators signal that upward momentum is weakening. The $68,000 support level has now become very important.
If it falls below this price, the next levels to watch are $67,350 and $66,500. If BTC loses $66,500 as well, a short-term rebound and recovery could become quite difficult.
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