Bitcoin Price Fails To Stabilize, Is Another Drop Imminent?

Bitcoin price started a recovery wave above $68,500. BTC is now struggling to clear $72,000 and might start another decline in the near term.

• Bitcoin is attempting to recover but is facing many hurdles near $72,000.
• The price is trading below $70,000 and the 100 hourly simple moving average.
• There is a short-term bearish trend line forming with resistance at $69,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might dip again if it trades below the $68,000 and $67,700 levels.

Bitcoin price managed to remain stable above the $66,500 zone. BTC started a recovery wave and was able to climb above the $68,000 resistance zone.

The price surpassed the 50% Fib retracement level of the downward move from the $78,988 swing high to the $60,500 low. However, the bears seem to be active near the $72,200 and $72,500 levels. Besides, there is a short-term bearish trend line forming with resistance at $69,200 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below $70,000 and the 100 hourly simple moving average. If the price remains stable above $68,000, it could attempt a fresh increase. Immediate resistance is near the $69,200 level and the trend line.

The first key resistance is near the $71,000 level. A close above the $71,000 resistance might send the price further higher. In the stated case, the price could rise and test the $72,000 resistance or the 61.8% Fib retracement level of the downward move from the $78,988 swing high to the $60,500 low. Any more gains might send the price toward the $73,500 level. The next barrier for the bulls could be $74,000 and $74,500.

If Bitcoin fails to rise above the $71,500 resistance zone, it could start another decline. Immediate support is near the $68,000 level. The first major support is near the $67,650 level.

The next support is now near the $65,500 zone. Any more losses might send the price toward the $65,000 support in the near term. The main support now sits at $63,200, below which BTC might struggle to recover in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $68,000, followed by $67,600.

Major Resistance Levels – $71,500 and $72,000.