Bitcoin Price Corrects Recent Gains: Is a Deeper Dip Coming?

30 September 2024

Bitcoin price extended its increase above $66,000. BTC is now correcting gains below $65,500 and might continue to move down toward $64,000.

Bitcoin is correcting gains from the $66,500 zone.
The price is trading below $65,250 and the 100 hourly Simple moving average.
There was a break below a short-term bullish trend line with support at $65,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase if it stays above the $64,000 support zone.

Bitcoin Price Starts Downside Correction

Bitcoin price remained supported near the $63,250 level. BTC extended its increase above the $65,500 resistance zone. It even cleared the $66,000 level.

A high was formed at $66,452 and the price is now correcting gains. There was a decline below the $66,000 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $62,672 swing low to the $66,452 high.

There was a break below a short-term bullish trend line with support at $65,750 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $65,500 and the 100 hourly Simple moving average.

The bulls are now trying to protect the $64,500 zone. If there is a fresh increase, the price could face resistance near the $65,250 level. The first key resistance is near the $65,500 level. A clear move above the $65,500 resistance might send the price higher.

The next key resistance could be $66,500. A close above the $66,500 resistance might spark more upsides. In the stated case, the price could rise and test the $68,000 resistance level.

More Losses In BTC?

If Bitcoin fails to rise above the $65,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $64,200 level and the 61.8% Fib retracement level of the upward move from the $62,672 swing low to the $66,452 high.

The first major support is near the $64,000 level. The next support is now near the $63,500 zone. Any more losses might send the price toward the $62,650 support in the near term.

Technical indicators:

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

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

Major Support Levels – $64,200, followed by $64,000.

Major Resistance Levels – $65,250, and $65,500.

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