Bitcoin Dips From Highs, What Could Trigger Fresh Increase

Bitcoin price started a downside correction from the $68,500 zone against the US Dollar. BTC might start a fresh increase unless there is a break below $64,000.

Bitcoin started a downside correction below the $68,000 and $67,000 levels.
The price is still trading above $65,000 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $66,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if the $64,000 support remains intact.

Bitcoin Price Corrects Lower

Bitcoin price gained pace above the $65,000 support zone. BTC extended its rally above the $66,500 and $67,000 resistance levels. The price even surged above the $68,000 level.

It traded to a new all-time high near $68,495 before there was a downside correction. The price declined below the $68,000 and $67,800 support levels. There was a break below the 50% Fib retracement level of the upward move from the $65,200 swing low to $68,495 high.

However, bitcoin still trading above $65,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $66,000 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $67,500 level. The first major resistance is near the $68,000 level. A clear break above $68,000 resistance may possibly call open the doors for a fresh increase. The next major resistance sits near the $68,500 level. Any more gains might lead the price towards the $70,000 level.

Dips Supported in BTC?

If bitcoin fails to clear the $68,000 resistance zone, it could extend its downside correction. An immediate support on the downside is near the $66,500 level. The first major support is now forming near the $66,400 level.

It is close to the 61.8% Fib retracement level of the upward move from the $65,200 swing low to $68,495 high. The next major support is near the $65,000 level, below which the price could dive towards the key breakdown support at USD 64,000 in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

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

Major Support Levels – $66,400, followed by $66,000.

Major Resistance Levels – $67,500, $68,000 and $68,500.

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