Bitcoin Extends Correction, Why The Bulls Might Take Back Step

• Teresa Bach
• November 11, 2021
• Bitcoin
• 0 Comments

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 Corrects Lower
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.

Source: BTCUSD on TradingView.com
It is close to the 50% Fib retracement level of the recent decline from the $68,991 swing high to $62,700 low. A clear break above $65,800 resistance may possibly call open the doors for a fresh increase. The next major resistance sits near the $67,500 level.
More Losses in BTC?
If bitcoin fails to clear the $65,000 resistance zone, it could extend its downside correction. An immediate support on the downside is near the $63,500 level.
The first major support is now forming near the $63,000 level. The next major support is near the $62,500 level, below which the price could even struggle to stay above the $62,000 support zone.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $63,500, followed by $62,500.
Major Resistance Levels – $65,000, $65,800 and $66,500.