TA: Bitcoin Retreats Lower, Why There Is Risk of Sharp DeclineOctober 22, 2021
Bitcoin price traded to a new all-time high above $66,800 before correcting lower against the US Dollar. BTC traded below $63,000 and it remains at a risk of more downsides.
- Bitcoin rallied above the $65,000 and $66,000 resistance levels before correcting lower.
- The price is now trading below $63,000 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $63,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could accelerate lower if it remains below the $64,000 pivot level.
Bitcoin Price Corrects Lower
Bitcoin price extended its increase above the $65,000 resistance zone. BTC even broke $66,000 and traded to a new all-time high near $66,982.
Recently, there was a downside correction below the $65,000 support level. There was also a break below a major bullish trend line with support near $63,200 on the hourly chart of the BTC/USD pair. The pair is now trading below $63,000 and the 100 hourly simple moving average.
A low is formed near $62,050 and it is now consolidating losses. An immediate resistance is near the $63,200 level. It is near the 23.6% Fib retracement level of the downward move from the $66,982 swing high to $62,050 low.
The 100 hourly SMA is also positioned just above the $63,200 level. A clear break above the $63,200 resistance could open the doors for a fresh increase. The next major resistance sits near the $64,500 level, above which the price might rise towards the $66,000 level.
Source: BTCUSD on TradingView.com
The $64,500 resistance is close to the 50% Fib retracement level of the downward move from the $66,982 swing high to $62,050 low. Any more gains may possibly call for a new all-time high above the $67,000 level in the near term.
More Losses In BTC?
If bitcoin fails to clear the $63,200 resistance zone, it could extend its downside correction. An immediate support on the downside is near the $62,200 level.
The first major support is now forming near the $62,000 level. A break below the $62,000 support may possibly push the price towards the $60,000 support zone.
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 – $62,200, followed by $62,000.
Major Resistance Levels – $63,200, $64,500 and $66,000.
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