Bitcoin Faces Critical Test Near $63,800 as Momentum Wavers

Bitcoin's price has been trading near $63,800 after failing to maintain its momentum above the key resistance zone of $65,200-$65,600.

A harmonic ABCD price pattern has formed on the 4-hour chart, with the price reaching the D point near $65,200 before reversing bearishly.

The short-term selling pressure remains in place as Bitcoin trades below its moving average, but momentum indicators are approaching oversold territory, potentially setting the stage for a temporary rebound.

However, technical analysis suggests that holding above the $63,200-$63,400 zone is crucial to restoring the short-term bullish outlook and pushing Bitcoin back toward key resistance levels.