Key Takeaways:
- Bitcoin started another decline from the $72,000 resistance.
- BTC/USD traded below a key bullish trend line with support at $69,000 on the daily chart.
- The price could decline heavily if it fails to stay above the 50-day simple moving average (blue) and $66,000.
NEW DELHI (CoinChapter.com) — Bitcoin price is testing crucial support at $66,000. BTC could recover and retest $72,000 unless the bulls fail to protect the $66,000 support zone.
Bitcoin Price Takes Hit
After a steady increase above the $70,000 level, Bitcoin’s price failed again to clear the $72,000 resistance zone. This caused a sharp bearish reaction. If the bears remain in action, a double top could be in the making.
There was a drop below the $70,000 and $69,000 levels. On the daily chart, BTC traded below a key bullish trend line with support at $69,000. The price settled below the 23.6% Fib retracement level of the key increase from the $56,710 swing low to the $71,920 high.
Bitcoin price tested the key support at $66,000 and the 50-day simple moving average (blue). The bulls are putting up a strong fight near the $66,000 zone.
If the double top pattern plays out, there could be a sharp decline. A daily close below $66,000 and the 50-day simple moving average (blue) might send the price toward the $64,400 support or the 50% Fib retracement level of the key increase from the $56,710 swing low to the $71,920 high.
If the bulls fail to protect the $64,400 support, the price could decline further. In this case, it might decline toward the $60,300 support.
Another Increase In BTC?
Conversely, Bitcoin could stay above $66,000 and start a fresh increase. Immediate resistance on the upside sits at the $68,400 zone. The first major resistance is now forming near the $70,000 zone. If BTC price breaks the $70,000 resistance, it could spark a strong increase.
The next key resistance is $72,000, above which the price could gain bullish momentum. In this case, the bulls could even aim for a move toward the $75,000 region.
Today, the Fed will announce interest rates. The market is positioned for no rate cuts. However, Elizabeth Warren recently sent a letter to Jerome Powell asking for rate cuts, signaling politicians’ desperation to reduce rates.
Overall, Bitcoin is consolidating gains above the key support at $66,000 and the 50-day SMA. BTC must stay above $66,000 to bounce back and avoid a major decline in the coming days.
