Bitcoin Consolidates, Why There Is Risk of Larger Downside Correction

Bitcoin price is struggling to clear the $62,500 resistance against the US Dollar. BTC could decline heavily if there is a close below $60,000 in the near term.

• Bitcoin is facing resistance near the $62,500 and $62,650 levels.
• The price is now trading below $61,500 and the 100 hourly simple moving average.
• There is a major bullish trend line with support near $60,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could accelerate lower if there is a clear break below $60,000.

Bitcoin Price Stuck In Range

Bitcoin price made another attempt to clear the $62,500 and $62,650 resistance levels. However, BTC failed to gain strength above $62,500. A high was formed near $62,500 and the price started a fresh decline.

There was a break below the $62,000 support level and the 100 hourly simple moving average. There was a break below the 50% Fib retracement level of the upward move from the $59,449 swing low to $62,500 high. The price even spiked below the $61,000 level.

It is now finding bids near the $60,500 support zone. Bitcoin tested the 61.8% Fib retracement level of the upward move from the $59,449 swing low to $62,500 high.

There is also a major bullish trend line with support near $60,500 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $61,200 level and the 100 hourly SMA. The first major resistance is near the $61,500 level.

Source: BTCUSD on TradingView.com

The main resistance is still near the $62,500 and $62,650 levels. A clear break above $62,500 resistance may possibly call open the doors for a move towards the $63,200 level. The next major resistance sits near the $64,500 level.

More Losses In BTC?

If bitcoin fails to clear the $62,500 resistance zone, it could extend its decline. An immediate support on the downside is near the $60,800 level.

The first major support is now forming near the $60,500 level. A break below the $60,500 support and the trend line may possibly push the price further lower. The next key support is near the $58,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

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

Major Support Levels – $60,500, followed by $60,000.

Major Resistance Levels – $61,200, $62,000 and $62,500.