Bitcoin price began a downward correction from the resistance zone at $71,650. BTC is currently consolidating and may correct towards support at $69,500.

• Bitcoin struggled above $71,500 and began a downward correction.
• The price is above $70,000 and Straightforward’s 100-hour moving average.
• There was a break below a key uptrend line with support at $70,650 on the hourly chart of the BTC/USD pair (fed by Kraken data).
• The pair could fall further if there is a move below the $70,000 level.

Bitcoin price correction begins

Bitcoin price extended its rally above the $70,000 level. BTC was able to clear the $70,500 and $71,200 levels to move further into the positive zone. However, bears were vigorous near the $71,650 zone.

The highest level was formed at $71,682 and the price began a downward correction. The price fell below the 23.6% Fib retracement level of the rising wave, from a low of $67,285 to a high of $71,682. There was also a break below a key uptrend line with support at $70,650 on the hourly chart of the BTC/USD pair.

The price tested the support zone at $70,200. Bitcoin is currently trading above $70,000 and the 100-hour uncomplicated moving average. On the other hand, the price is facing resistance near the $70,800 level.

The first major resistance could be $71,200. The next key resistance could be $71,650. A clear move above the resistance at $71,650 could result in a price augment. In the given case, the price could move higher and test the resistance at $72,000. Any further gains could push BTC towards the resistance at $73,200.

More flaws in BTC?

If Bitcoin fails to rise above the $71,200 resistance zone, it may continue to decline. Immediate downside support is located near the $70,200 level.

The first major aid is $70,000. The next support is currently forming near $69,500, which is the 50% Fib retracement level of the rising wave from a low of $67,285 to a high of $71,682. Any further losses could push the price towards the $68,500 support zone in the near future.

Technical Indicators:

Hourly MACD – The MACD is currently losing momentum in the bullish zone.

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

Main support levels – $70,200 and then $70,000.

Major resistance levels – $71,200 and $71,650.