The Bitcoin price recently attempted to recover above the $61,500 resistance zone but unfortunately failed. This failure led to another decline in BTC’s value, with predictions pointing towards a possible dive towards the $55,000 mark.
Current Price Movement
As of now, Bitcoin is trading below $60,000 and the 100 hourly Simple Moving Average. There is a key bearish trend line forming with resistance at $58,350 on the hourly chart of the BTC/USD pair (data feed from Kraken). Given this resistance, the pair might struggle to initiate a fresh increase above the $60,000 resistance zone.
Bitcoin price faced challenges in starting a decent recovery wave above the $61,500 resistance level. The bears took control and pushed the price below the $60,000 support zone, leading to a sharp decline below the $58,500 level. At one point, the price even dropped below $57,000, forming a low at $56,650.
Consolidating Losses
After hitting the low of $56,650, the price is currently consolidating its losses. The bulls are struggling to kickstart a recovery wave from this level. The price remains well below the 23.6% Fib retracement level of the downward move from the $63,800 swing high to the $56,650 low.
Bitcoin price is now trading below $60,000 and the 100 hourly Simple Moving Average. The key bearish trend line coupled with resistance at $58,350 on the hourly chart of the BTC/USD pair poses a challenge for any potential increase. If there is a successful move upwards, the price could encounter resistance near the $57,500 level, followed by $58,350.
Support Levels to Monitor
In case Bitcoin fails to surpass the $58,350 resistance zone, a continuation of the downward movement is expected. The immediate support on the downside lies near the $56,650 level, with major support at $56,200. Another support level is forming around $55,800, with the possibility of further declines towards the $55,000 support zone in the near term.
The Hourly MACD is gaining momentum in the bearish zone, indicating a negative sentiment towards Bitcoin price movement. Additionally, the Hourly Relative Strength Index (RSI) for BTC/USD is currently below the 50 level, further highlighting the bearish outlook.
Bitcoin price continues to struggle with recovery efforts as it faces resistance levels and technical indicators signaling a bearish trend. Traders and investors should closely monitor the key support and resistance levels mentioned to gauge potential price movements in the coming days.
Leave a Reply