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Bitcoin Extends Correction, Why The Bulls Might Take Back Step

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Bitcoin price started a downside correction below $66,000 against the US Dollar. BTC might extend its downside correction towards $62,000 in the near term.

Bitcoin started a downside correction below the $66,000 and $65,000 levels.

The price is now trading below $65,000 and the 100 hourly simple moving average.

There was a break below a major bullish trend line with support near $66,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair could continue to move down towards the $62,000 support

Bitcoin price failed to gain pace above the $66,000 resistance zone. As a result, BTC saw a bearish reaction below the $65,500 support level.
There was a clear break below the $65,000 support and the 100 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $66,500 on the hourly chart of the BTC/USD pair.
The pair gained pace below the $65,000 support and the price dropped towards $63,000. A low is formed near $62,700 and the price is now consolidating losses. There was a recovery wave above the 23.6% Fib retracement level of the recent decline from the $68,991 swing high to $62,700 low.
On the upside, an immediate resistance is near the $64,800 level. The first major resistance is near the $65,000 level and the 100 hourly SMA. The main resistance is now forming near the $65,800 level.

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