Bitcoin Price Decline Worsens: Could It Be Setting Up for Major Reversal?

Bitcoin price is struggling below the $69,500 zone. BTC is showing signs of weakness and upsides might be capped near the $69,200 level.

• Bitcoin started a fresh decline from the $70,000 zone.
• The price is trading below $70,000 and the 100 hourly Simple moving average.
• There is a new connecting bearish trend line forming with resistance at $68,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could struggle to recover above the $69,200 resistance zone.

Bitcoin price failed to start a fresh increase and extended losses below the $70,500 zone. There was a move below the $70,000 and $69,200 support levels.

The price even declined below $68,000 and tested $66,800. A low was formed at $66,836 and the price is now attempting to recover. There was a move above the $67,500 resistance. The price tested the 23.6% Fib retracement level of the downward move from the $71,576 swing high to the $66,836 low.

Bitcoin price is now trading below $70,000 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $68,200 level. There is also a new connecting bearish trend line forming with resistance at $68,400 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $69,200 level or the 50% Fib retracement level of the downward move from the $71,576 swing high to the $66,836 low. A clear move above the $69,200 resistance might send the price higher. The next key resistance could be $70,000.

A close above the $70,000 resistance might initiate more gains. In the stated case, the price could rise and test the $71,200 resistance level. Any more gains might send the price toward the $72,000 resistance level.

If Bitcoin fails to rise above the $69,200 resistance zone, it could start another decline. Immediate support on the downside is near the $67,400 level.

The first major support is near the $66,800 level. The next support is now near the $66,500 zone. Any more losses might send the price toward the $65,500 support in the near term.

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 – $67,500, followed by $66,800.

Major Resistance Levels – $69,200, and $70,000.