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Bitcoin Consolidates Losses, Why Recovery Could Fade Near $62.5K

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Bitcoin price started an upside correction above $60,000 against the US Dollar. BTC could recover further, but the bears might remain active near $62,500.

  • Bitcoin is still trading well below the $62,000 and $62,500 resistance levels.
  • The price is now trading below $62,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line with resistance near $60,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could recover towards $62,500, where the bears might take a stand.
Bitcoin Price Turns Red

Bitcoin price extended decline below the $62,000 support zone. BTC even traded below the $60,000 support level and settled below the 100 hourly simple moving average.

Finally, the price traded as low as $58,630 and is now consolidating losses. There was a minor recovery wave above the $59,500 and $60,000 levels. There was a break above the 23.6% Fib retracement level of the main drop from the $66,350 swing high to $58,630 low.

On the upside, an immediate resistance is near the $60,700 level. There is also a major bearish trend line with resistance near $60,700 on the hourly chart of the BTC/USD pair.

A proper close above the $60,700 level could set the tone for a larger increase. The first major resistance is near the $62,500 level. It is close to the 50% Fib retracement level of the main drop from the $66,350 swing high to $58,630 low.

Source: BTCUSD on TradingView.com

If the bulls push the price towards $62,500, the bears are likely to take a stand. Any more gains could open the doors for a move towards the $63,200 level.

More Losses in BTC?

If bitcoin fails to recover above the $61,200 resistance zone, it could extend decline. An immediate support on the downside is near the $59,500 level.

The first major support is now forming near the $59,200 level. The next major support is near the $58,500 level, below which the bears might aim a more downsides. In the stated case, the price may perhaps slide towards the $55,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

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

Major Support Levels – $59,200, followed by $58,500.

Major Resistance Levels – $60,700, $61,200 and $62,500.


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