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Bitcoin (BTC) Price Corrects After Creating New ATH, How Low Can It Fall?

The Bitcoin (BTC) price has shown signs of weakness. Breaking below the nearest support area could lead to a deep correction.

Daily Outlook

The Bitcoin (BTC) has surged by 91.34% since January 23, 2024, to reach a new all-time high of $73,826 on March 13. The price has since declined.

Today, the price dropped below the low of two pinbar candles ($68,620) created on March 12 and 14, although it hasn’t closed below it yet.

This is a sign of weakness, indicating that the bears are selling aggressively at higher levels.

The daily RSI has formed a bearish divergence and dropped below 70, supporting the possibility of further decline.

If the price continues to drop, it could reach the zone of $59,300-$60,000, formed by the horizontal support area and the 0.618 Fibonacci retracement level of the recent rally.

BTC/USDT daily chart. Source: TradingView

Nearest Horizontal Support

The 4-hour chart shows that the BTC price broke below the horizontal support area at $68,440.

The 4-hour RSI has broken below the 50 level and confirmed it as resistance (red arrow), indicating that the bears have gained short-term control.

Therefore, the BTC price could drop to the nearest horizontal support area at $63,300 in the coming days.

BTC/USDT 4-hourly chart. Source: TradingView

Conclusion

The most likely outlook suggests that the BTC price will continue to correct over the next few days. The nearest target is $63,300 and lower towards the $59,300-$60,000 area.

The bearish outlook will be invalidated if the BTC price reclaims the $68,440 area on the 4-hour timeframe.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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