Bitcoin Price Pullback: Is the Rally Over?
Bitcoin Price Pullback: Is the Rally Over?
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Bitcoin has taken a breather after its recent surge above $63,500, raising questions about the strength of the rally. After a strong push past the $64,800 mark, BTC is currently correcting its gains.
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The price is trading below both $63,500 and the 100-hour Simple Moving Average, indicating a bearish sentiment. Further, a connecting bearish trend line is forming on the hourly chart, adding to the downward pressure. This line currently acts as resistance at $63,240. If the price breaks below the $62,450 support level, we could see further losses.
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The Rise and Fall of Bitcoin’s Momentum
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Bitcoin’s recent gains were fueled by a strong buying spree that saw the cryptocurrency climb above key resistance levels at $63,800 and $64,200. The bullish momentum even propelled the price above the $64,500 level, reaching a high of $64,777. However, this rally seems to be losing steam as Bitcoin has begun to retrace its steps.
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The price has dipped below both the $64,000 and $63,500 support levels and is now below the 61.8% Fibonacci retracement level of the recent upward move. It’s also currently trading below the 76.4% Fibonacci retracement level of the same move.
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Potential Scenarios for Bitcoin
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Upside Potential
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A fresh surge in Bitcoin’s price could encounter resistance near the $63,250 level. If it manages to overcome this resistance, the next target could be $64,200. A strong close above $64,200 might trigger further bullish momentum, potentially pushing the price toward the $64,750 resistance level.
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Downside Risks
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If Bitcoin fails to break through the $63,500 resistance, a further downward move is likely. Immediate support on the downside sits near the $62,750 level. The first major support level is $62,450, followed by the $62,000 zone. If the downward pressure intensifies, the price could even test the $61,200 support level in the near term.
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Technical Indicators
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- Hourly MACD: The MACD is currently gaining momentum in the bearish zone, indicating a potential continuation of the downward trend.
- Hourly RSI: The RSI for BTC/USD is below the 50 level, suggesting that the market is oversold and a potential rebound could occur.
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Key Levels to Watch
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- Support: $62,750, $62,450, $62,000, $61,200
- Resistance: $63,500, $64,200, $64,750
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While the current pullback suggests a potential shift in momentum, it’s important to remember that the cryptocurrency market is known for its volatility. It’s too early to declare the end of the rally, and Bitcoin could still surprise with a rebound. However, traders should monitor the price action closely and be prepared for both upside and downside scenarios.