09 Oct
09Oct

As of October 9, 2024, Bitcoin (BTC) has experienced a notable correction, testing the $61,850 zone after struggling to maintain momentum above the $65,000 mark. Currently, Bitcoin is consolidating its losses and may be gearing up for a fresh attempt at breaking the critical $62,500 resistance. Let’s delve into the recent price movements and what investors should keep an eye on.

Recent Price Movements

Bitcoin faced a setback after failing to establish a foothold above $65,000, leading to a decline below the $64,000 and $63,500 thresholds. The cryptocurrency even broke through the crucial support level at $62,500, forming a low around $61,825. Following this drop, Bitcoin is now in a consolidation phase, showing minor signs of recovery with a slight increase above the $62,250 mark.

The price has tested the 23.6% Fibonacci retracement level of the recent decline, which runs from the swing high of $64,419 to the low of $61,825. However, BTC is still trading below the $62,500 level and the 100-hour Simple Moving Average, indicating that the upside potential is limited in the short term.

Resistance Levels to Watch

On the upside, Bitcoin may encounter significant resistance around the $62,500 mark. A bearish trend line is also forming, with resistance at approximately $61,450 on the hourly chart of the BTC/USD pair.

The first major resistance is identified near the $63,150 level, coinciding with the 50% Fibonacci retracement level of the recent decline. A decisive move above this resistance could pave the way for further upward momentum. If Bitcoin manages to break past $63,150, the next resistance level to watch will be around $64,200.

Should Bitcoin successfully close above $64,200, it may trigger a surge, potentially allowing it to test the $65,000 resistance level again. If bullish momentum continues, BTC could even reach the $65,500 mark.

Risks of Further Decline

While there are signs of potential recovery, Bitcoin faces risks of another decline if it fails to overcome the $62,500 resistance zone. Immediate support is located around the $62,000 level, with the first major support near $61,850.If Bitcoin breaks below this level, the next support zone is at $61,200. A sustained drop below $61,200 could lead to further losses, potentially testing the psychological support level of $60,000 in the near term.

Conclusion

As Bitcoin navigates the $61,850 zone and aims for a recovery above the $62,500 resistance, investors should remain vigilant. The current consolidation phase presents both opportunities for gains and risks for further declines. With key resistance levels looming and critical support areas defined, the coming days will be crucial for Bitcoin's trajectory. As always, thorough analysis and risk management will be essential for those participating in this volatile market.

October 2024, Cryptoniteuae

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