Bitcoin Trades Sideways, Technicals Point Chances of Fresh Rally

Bitcoin

Bitcoin price is struggling to gain pace above $63,500 against the US Dollar. BTC could start a fresh rally if it clears $63,500 and $64,000 in the near term.

Bitcoin Price Consolidates

Bitcoin price made another attempt to gain traction above the $63,500 and $64,250 resistance levels. However, BTC failed to settle above the $63,500 level and started a fresh downside correction.

There was a sharp decline below the $62,000 support zone and the 100 hourly simple moving average. The price even spiked below $61,000. A low was formed near $60,810 and it is now correcting losses. There was a break above the $62,000 resistance zone and the 100 hourly SMA.

Bitcoin surpassed the 50% Fib retracement level of the recent decline from the $64,327 swing high to $60,810 low. It is now consolidating above the $62,000 level and the 100 hourly SMA.

On the upside, an immediate resistance is near the $62,800 level. The first major resistance is near the $63,000 level. There is also a major contracting triangle forming with support near $62,000 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The main resistance is still near the $63,500 level. It is near the 76.4% Fib retracement level of the recent decline from the $64,327 swing high to $60,810 low. A clear break above $63,500 resistance may possibly call open the doors for a fresh rally. The next major resistance sits near the $65,000 level.

Fresh Dip In BTC?

If bitcoin fails to clear the $63,500 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $62,200 level.

The first major support is now forming near the $62,000 level and the triangle lower trend line. A clear close below the $62,000 support could open the doors for a move towards the $60,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly 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 – $62,000, followed by $60,800.

Major Resistance Levels – $62,800, $63,500 and $64,000.

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