Bitcoin’s price fell sharply after failing to hold above $68,000 and is now consolidating its losses. A recovery above $66,000 may prove difficult.
BTC began a fresh decline, dropping below the $66,500 support level. The price is currently trading below both $66,500 and the 100-hour simple moving average. On the hourly chart, a bullish trend line with support at $68,000 was broken.
The price dropped over 5%, moving below $67,200 and then under $66,500. It extended its decline past $66,000 and briefly spiked below $65,000, forming a low near $64,203. While there has been a minor recovery above $64,500, the price remains below the 23.6% Fibonacci retracement level of the recent drop from $68,653 to $64,203.
For Bitcoin to attempt a fresh increase, it must hold above $64,200. Immediate resistance is near $65,250, with the first key resistance at $66,400 (the 50% Fib retracement level). A close above $66,400 could push the price toward $67,000, with further gains potentially testing $67,600, $68,000, and $68,500.
Conversely, if BTC fails to climb above the $66,000 resistance zone, it could start another decline. Immediate support is near $64,400, with major support at $64,200. The next support sits near $63,500, and further losses could bring the price toward $62,850. The main support is at $62,000; a break below this level could hinder any near-term recovery.
Technical indicators:
– Hourly MACD: Gaining momentum in the bearish zone.
– Hourly RSI: Below the 50 level.
– Major Support Levels: $64,500, followed by $64,200.
– Major Resistance Levels: $66,000 and $66,500.
Frequently Asked Questions
FAQs Bitcoin Price Drops 5 Amid Bearish Momentum
BeginnerLevel Questions
1 What does it mean that Bitcoins price dropped by 5
It means the value of 1 Bitcoin has decreased by 5 compared to its price at a specific earlier point If it was worth 60000 a 5 drop would bring it down to approximately 57000
2 What is bearish momentum
Bearish momentum refers to a strong and sustained trend of falling prices It suggests that more people are selling than buying and the market sentiment is pessimistic expecting prices to go lower
3 Should I panic and sell my Bitcoin because of this drop
Panic selling is rarely a good strategy Price volatility is normal for cryptocurrencies Its better to assess your longterm goals investment strategy and risk tolerance rather than reacting to shortterm movements
4 What usually causes a price drop like this
Price drops can be triggered by many factors including large selloffs by major holders negative news headlines broader stock market declines regulatory concerns or simply a shift in overall market sentiment from optimism to caution
5 Is this a good time to buy Bitcoin
Some investors see price dips as potential buying opportunities but theres no guarantee the price wont fall further Never invest more than you can afford to lose and consider dollarcost averaging to reduce timing risk
Advanced Practical Questions
6 How can I tell if this is a shortterm correction or the start of a longer bear market
Theres no definitive way to know Analysts look at trading volume price support levels macroeconomic factors and onchain data A break below key longterm support levels often signals a deeper bear trend
7 What are support levels and are they relevant now
A support level is a price point where buying interest has historically been strong enough to prevent the price from falling further If Bitcoin breaks below a major support level during this drop it could trigger more selling as automated stoploss orders are activated
8 Does this drop affect other cryptocurrencies
Typically yes Bitcoin often sets the trend for the broader crypto market A significant