Bitcoin has once again faced challenges in breaking through the $61,500 resistance zone, resulting in a fresh decline towards the $58,000 support level. This recent struggle highlights the volatility and unpredictability of the cryptocurrency market.
Analyzing the hourly chart of the BTC/USD pair from Kraken, it is evident that Bitcoin failed to settle above the key resistance zone, forming a short-term top and initiating a downward trend. The price is now trading below $60,000 and the 100 hourly Simple moving average, indicating potential bearish momentum in the near term.
After breaking below the $60,000 and $59,000 levels, Bitcoin retested the $58,000 support zone, with a low reaching $58,061. The immediate support on the downside is near $58,000, followed by a major support level at $57,650. Further losses could potentially drive the price towards the $56,500 zone or even as low as $55,000 in the short term.
On the upside, the price could face resistance near the $58,800 level, which is close to the 23.6% Fib retracement level of the downward move from the $61,438 swing high to the $58,061 low. The first key resistance level is near $59,500, followed by a major hurdle at $60,000. A clear move above the $59,500 resistance level could signal further upward momentum in the coming sessions, with the next significant resistance at $61,500.
The Hourly MACD is currently gaining momentum in the bearish zone, while the Hourly RSI for BTC/USD is below the 50 level, indicating a potential continuation of the downward trend. It is essential for traders and investors to closely monitor these technical indicators to make informed decisions in the volatile cryptocurrency market.
The recent price action of Bitcoin underscores the inherent volatility and uncertainty in the cryptocurrency market. Traders and investors should exercise caution and implement risk management strategies to navigate the fluctuations and mitigate potential losses. Additionally, staying informed about key support and resistance levels, as well as monitoring technical indicators, can help in making well-informed trading decisions in the dynamic and ever-changing landscape of cryptocurrency.
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