Bitcoin price started a downside correction from the $64,600 zone. BTC is showing bearish signs and might continue lower below $61,200.

• Bitcoin failed to stay above $64,000 and extended losses.
• The price is trading below $62,800 and the 100 hourly simple moving average.
• There was a break below a bullish trend line with support at $62,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might extend losses if it stays below the $62,500 and $62,200 levels.

Bitcoin Price Dips Again

Bitcoin price failed to clear the $64,500 resistance zone. BTC started a downside correction and declined below the key support at $63,500 to enter a bearish zone.

There was a move below the 50% Fib retracement level of the upward move from the $59,070 swing low to the $64,613 high. Besides, there was a break below a bullish trend line with support at $62,500 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below $62,500 and the 100 hourly simple moving average. If the price remains stable above $61,500, it could attempt a fresh increase. Immediate resistance is near the $62,000 level. The first key resistance is near the $62,200 level.

A close above the $62,200 resistance might send the price further higher. In the stated case, the price could rise and test the $64,000 resistance. The next resistance could be near the $64,500 level. Any more gains might send the price toward the $66,000 level. The main hurdle for the bulls could be $66,500.

Downside Extension In BTC?

If Bitcoin fails to rise above the $62,500 resistance zone, it could start another decline. Immediate support is near the $61,200 level or the 61.8% Fib retracement level of the upward move from the $59,070 swing low to the $64,613 high.

The first major support is near the $60,950 level. The next support is now near the $60,200 zone. Any more losses might send the price toward the $59,000 support in the near term. The main support now sits at $58,500, below which BTC might struggle to recover in the near term.

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 – $61,200, followed by $60,200.

Major Resistance Levels – $62,500 and $64,000.

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Mortgage rates are likely to move up in June, though the increase might not be as severe as what customers are seeing at the gas station.

The Federal Reserve typically releases a summary of economic projections four times a year. The report conveys central bankers’ predictions for the economy across a range of factors, including inflation, GDP growth and employment. The report also gives insights into how central bankers might set the federal funds rate in the months ahead, along with perceived economic risks.

It’s possible that new chair Kevin Warsh will change the Fed’s approach to communications. Warsh believes that central bankers have been too transparent in telegraphing decisions ahead of meetings, and has said that he’d like to reform the Fed as a more tight-lipped institution.

If the Fed does make the June summary of economic projection public, it will be the first report since the war in Iran really began to have a measurable impact on the economy, making it especially informative for rate-watchers.

The last report was released in mid-March; the war hadn’t lasted three weeks yet, and there was still hope that it could be a short-lived conflict.

The March projection outlined central bankers’ expectations that inflation was easing, and unemployment appeared to be steady. The economic signals indicated in the March summary could have created a pathway for the Fed to lower rates through 2027.

If the report indicates that central bankers foresee worsening inflation and rising interest rates, lenders could respond by raising mortgage rates throughout the summer.

From the Nerds: Kate on Rates

Rising energy prices make it more costly to manufacture and transport goods, and the war with Iran — in an important region for oil shipping and production — has stoked inflation fears among investors.

High fuel costs could have pushed mortgage rates up even further by now, but rates have been cushioned by Fannie Mae and Freddie Mac. The government-sponsored entities have been buying up billions of dollars’ worth of mortgage-backed securities.

According to Realtor.com, Fannie Mae’s mortgage bond portfolio has more than doubled in the past year at the direction of President Trump.

“At Fannie Mae, our mission guides how we operate, which is especially important today as the macroeconomic environment is adding uncertainty to an already challenging housing market,” said Peter Akwaboah, acting CEO and chief operating officer at Fannie Mae, in Q1 2026 earnings-call remarks.

While Fannie and Freddie continue on this buying path, rates should stay below their worst-case-scenario thresholds. Still, security purchases can only do so much, and it likely won’t be enough to stop rates from rising altogether.

Fannie Mae’s latest housing forecast (released on May 12) shows rates moving above its April prediction. The previous forecast had rates falling in Q3 and Q4, ending the year with the 30-year rate at an average of 6.1%. The May forecast revises this projection, with rates remaining at 6.3% until the second quarter of 2027.

The Mortgage Bankers Association projects slightly rising rates through the rest of this year. MBA’s latest projections show 30-year mortgage rates ending the year at an average of 6.5%.

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