Bitcoin slipped from nearly $67,000 about ten days ago and started a sequence of lower highs and lower lows on short-term charts. This downtrend sparks speculation that the price could soon test the bull market trendline around $62,000.
Technical Signals Point to Resistance and Support Levels
According to TradingView data, Bitcoin has twice failed to break through the neckline of a bearish head and shoulders pattern. Each rally has been rejected at this resistance, including a recent push that also faltered near the top of a descending channel. Key horizontal supports lie at $63,250 and $62,250, where buyers might step in.
Expanding to the daily timeframe shows a notable fakeout above the descending channel. Bitcoin currently trades above its 50-day simple moving average (SMA), but a drop below could trigger significant losses. Past falls below this SMA led to crashes from $77,000 down to $60,000, and earlier from $90,000 to $60,000. The rising wedge on the RSI indicator appears vulnerable to breaking down, which would confirm weakening momentum.
The weekly candle for Bitcoin looks poised to close under $66,000 resistance again, holding just above the 200-week SMA and bouncing from the bull market trendline. JPMorgan recently warned about risks in the crypto market, highlighting Bitcoin's fragility amid uncertain macro conditions. also an uptick in oil prices could pressure U.S. stocks, which rarely bodes well for Bitcoin's price.
The next week or so will be key. Bitcoin’s short-term technicals suggest a breakdown might happen soon, potentially dragging prices toward the $62,000 support zone. Traders and investors should watch these levels closely.
This is informational content and should not be considered financial advice.
