Bitcoin Price Takes a Plunge: Analyzing the Sudden Drop

NewsBTC
Updated Jun 24, 2024 05:31
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Bitcoin price started another decline after it struggled near $64,550. BTC declined below the $63,500 support and might continue to move down.


■  Bitcoin started a fresh decline from the $64,550 resistance level.

■  The price is trading below $63,500 and the 100 hourly Simple moving average.

■  There is a connecting bearish trend line forming with resistance at $63,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).

■  The pair could extend losses if there is a clear move below the $62,700 and $62,500 support levels.


Bitcoin Price Dips Further


Bitcoin price failed to recover above the $65,000 level. BTC struggled near $64,550 and started another decline. There was a steady decline below the $64,000 and $63,500 levels.


The price even declined below the $63,000 level. A low was formed at $62,700 and the price is now consolidating losses. There is also a connecting bearish trend line forming with resistance at $63,600 on the hourly chart of the BTC/USD pair.


Bitcoin is now trading below $63,500 and the 100 hourly Simple moving average. If there is a recovery wave, the price could face resistance near the $63,550 level and the 23.6% Fib retracement level of the downward move from the $66,444 swing high to the $62,700 low.


The first major resistance could be $64,000. The next key resistance could be $64,500 or the 50% Fib retracement level of the downward move from the $66,444 swing high to the $62,700 low.

Bitcoin Price

A clear move above the $64,500 resistance might start a steady increase and send the price higher. In the stated case, the price could rise and test the $65,500 resistance. Any more gains might send BTC toward the $66,200 resistance in the near term.


More Downsides In BTC?


If Bitcoin fails to climb above the $63,550 resistance zone, it could continue to move down. Immediate support on the downside is near the $62,700 level.

The first major support is $62,200. The next support is now forming near $62,000. Any more losses might send the price toward the $61,200 support zone 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 – $62,700, followed by $62,200.

Major Resistance Levels – $63,550, and $64,500.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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