Bitcoin's price has shown a modest recovery attempt after a sharp decline, but it faces significant technical hurdles that challenge a sustained bullish move. The cryptocurrency failed to maintain stability above the $66,000 level, initiating a fresh decline that saw it break below the $65,000 support zone. The sell-off intensified, pushing the price below $64,000 and even causing a brief spike below $63,000. A low was established at $62,500, marking an over-two-week low, before a corrective bounce began.
The recovery has seen Bitcoin climb back above $65,000, retracing approximately 50% of the recent decline from the $68,654 swing high to the $62,500 low. However, the asset is currently trading below the crucial $66,500 level and beneath the 100-hour Simple Moving Average (SMA). A bearish trend line is forming with resistance at $66,600 on the hourly BTC/USD chart, data from Kraken shows, presenting a key barrier for bulls.
Technical indicators offer a mixed picture. The hourly Moving Average Convergence Divergence (MACD) is gaining pace in the bullish zone, and the Relative Strength Index (RSI) has moved above the 50 level, suggesting some short-term momentum. However, broader signals remain cautious. The MACD, while crossing above its signal line, is still in negative territory, and Bitcoin is on track for its sixth consecutive weekly decline, indicating persistent underlying weakness.
For the recovery to gain credibility, Bitcoin needs to achieve a stable close above the $67,200 resistance, which aligns with the 76.4% Fibonacci retracement level of the recent downswing. Success there could open a path toward testing resistances at $68,000 and $68,800. Conversely, failure to conquer the $66,500-$66,600 resistance zone could trigger another decline. Immediate support lies at $65,500, with major support at $65,000. A break below this could see a retest of the $62,500 low, with a further breach potentially exposing the psychologically important $60,000 level.
