Bitcoin Price Analysis: How Deep Can This Correction Go as BTC Dips Below $66K?

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Bitcoin Price Analysis: How Deep Can This Correction Go as BTC Dips Below $66K?
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Following an impulsive rally, Bitcoin lost its bullish momentum upon reaching the $70K threshold, indicating the presence of sellers in the market.

A detailed analysis of Bitcoin’s daily chart reveals that after decisively breaking above the 100-day moving average of $64.4K, the price continued its upward momentum toward the crucial and psychological resistance zone of $70K. If BTC breaks below the 100-day MA in the near future, this will signal a notable bearish trend, possibly leading to a plunge toward the $60K pivot. Overall, Bitcoin is expected to continue its sideways consolidation in the short term, ultimately receiving support and initiating a fresh bullish surge.On the 4-hour chart, following an impulsive surge initiated from the crucial $55K support region, Bitcoin surpassed multiple key resistance levels, including $60K and $65K.

The formation of this pattern, coupled with a bearish divergence between the price and the RSI indicator, indicates a potential bearish reversal in the short term, with the price retracing back toward the $65K crucial support region. This bearish scenario is only valid if BTC first breaks below the ascending wedge’s lower boundary.

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