Bitcoin Dips Below $66K: Key Levels to Watch for Recovery

The recent price action for Bitcoin, as tracked on the Kraken exchange, has been decisively negative. After failing to maintain stability above the $67,200 zone, BTC initiated a fresh decline that saw it breach multiple support levels. The most significant technical development was the break below a bullish trend line that had provided support at $68,000 on the hourly chart. This breakdown accelerated selling pressure, pushing the price below $66,500 and then spiking it under $65,000 to form a recent low at $64,203.

Despite a minor correction from that low, the recovery attempt remains weak. The price is currently trading well below the 23.6% Fibonacci retracement level of the drop from the $68,653 swing high to the $64,203 low. More importantly, Bitcoin’s position below both the $66,500 level and the 100-hour simple moving average confirms that sellers are in control for the time being. This consolidation below former support, now turned resistance, sets the stage for the next directional move.

For the bulls to regain any semblance of control, Bitcoin must first defend the immediate support at the $64,200 level. Stability above this zone could allow for an attempt at a fresh increase. The first hurdle for any recovery is near $65,250. However, the first major resistance is significantly higher, near the $66,400 level. This price point is not arbitrary; it represents the 50% Fibonacci retracement level of the recent decline, making it a key technical benchmark for measuring recovery strength.

A decisive hourly close above the $66,400 resistance could open the door for a test of the $67,000 level. Further gains might then target $67,600, with the ultimate bull targets being a reclaim of the $68,000 to $68,500 zone. However, given the current bearish technical structure, any rally toward these levels is likely to encounter heavy selling pressure from traders looking to exit positions at breakeven or with minimized losses.

The primary risk for Bitcoin in the near term is its inability to climb back above the $66,000 resistance zone. Failure here could easily precipitate another decline. The immediate support below the current price sits near $64,400, but the first major support is the recent low of $64,200. A break and sustained trade below $64,200 would be a strongly bearish signal, likely triggering a move toward the next support zone near $63,500.

Should selling pressure intensify, the price could be sent toward the $62,850 support level. The main support, however, is now viewed at $62,000. A breach of this level would represent a more profound technical breakdown, potentially invalidating the recent bullish structure and making a near-term recovery significantly more difficult. Traders are closely monitoring these levels as potential areas for the decline to stabilize or accelerate.

The technical indicators on the hourly chart align with the negative price action, providing little hope for an immediate bullish reversal. The Moving Average Convergence Divergence (MACD) indicator is not only in the bearish zone but is also gaining pace there, suggesting that downward momentum may be increasing. Concurrently, the Relative Strength Index (RSI) for the BTC/USD pair is positioned below the neutral 50 level, confirming that selling pressure is dominant.

These indicators underscore the importance of the identified support and resistance levels. With the MACD accelerating bearishly and the RSI in negative territory, the path of least resistance in the immediate future appears to be sideways to down. For a meaningful shift in sentiment, Bitcoin would need to not only break above key resistances like $66,400 but also see these technical indicators reverse course, with the RSI climbing back above 50 and the MACD showing signs of bullish convergence.