Bitcoin Consolidates Losses, Why 100 SMA Holds Is The Key

Bitcoin price started a downside correction below $65,000 against the US Dollar. BTC must climb above the 100 hourly SMA and $66,500 to start a fresh increase.

• Bitcoin started a downside correction below the $66,000 and $65,000 levels.
• The price is now trading below $66,000 and the 100 hourly simple moving average.
• There is a key contracting triangle forming with resistance near $65,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if there is a clear break above $66,000 and the 100 hourly SMA.

Bitcoin price started a downside correction below the $66,000 pivot level. BTC broke the $65,500 support level and the 100 hourly simple moving average to move into a short-term bearish zone.

There was a clear break below the $65,000 support and the price even spiked below $64,000. A low was formed near $62,700 before the price corrected higher. There was a break above the $64,000 resistance level.

Bitcoin climbed above the 23.6% Fib retracement level of the key decline from the $68,990 swing high to $62,700 low. On the upside, an immediate resistance is near the $65,200 level. There is also a key contracting triangle forming with resistance near $65,200 on the hourly chart of the BTC/USD pair.

The first major resistance is near the $65,850 level. It is close to the 50% Fib retracement level of the key decline from the $68,990 swing high to $62,700 low. The main resistance is now forming near the $66,500 level and the 100 hourly SMA.

A clear break above $66,500 resistance may possibly call open the doors for a fresh increase. The next major resistance sits near the $67,500 level.

If bitcoin fails to clear the $66,500 resistance zone, it could extend its downside correction. An immediate support on the downside is near the $64,200 level.

The first major support is now forming near the $63,500 level. The next major support is near the $62,850 level, below which the price could even decline below the $62,000 support zone.

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 – $63,500, followed by $62,500.

Major Resistance Levels – $65,200, $65,800 and $66,500.