Bitcoin failed to initiate a new recovery phase above the resistance level of $58,500. BTC has started another fall and could extend losses to below $54,000.
- Bitcoin has started to decline again and is now trading under the $56,500 area.
- Price is below the Simple Moving Average of 100 hours and $56,500.
- The hourly chart for the BTC/USD pairs shows a connective bearish trendline with resistance around $56,350. (Data feed from Kraken).
- They may struggle to increase their price above $58,000.
Bitcoin Turns Red
Bitcoin Price started at a recovery wave Above the $57,000 mark. BTC even rose above the $58,000 mark. The bears, however, were very active around the $58,500 zone of resistance.
At $58,396 a new high formed and the price began a downward trend. The price dropped below $57,000 to $56,500. Price is now consolidating loss after forming a new low at $54,301. A minor rise was seen towards the Fib 23.6% retracement of the decline from the swing high $58,396 to the low $54,301.
Bitcoin’s price remains below the $56,500 mark. 100 hourly Simple moving average. The immediate resistance to the upside lies near $56,000. The $56,400 mark is the first major resistance.
On the hourly BTC/USD chart, there is also an overlapping bearish trendline with resistance of $56,350. The 50% Fib level is the trendline’s location. It represents the downtrend from the $58,396 swing-high to the $54,301 bottom. If the price moves above the trendline, it could reach the $57,400 mark. Next, the price could face a major resistance at $58,400.
Close above the $58,40 support could trigger a gradual increase in price. Price could increase and try to reach $60,000 in future sessions.
BTC Losses Increased?
Bitcoin could fall further if it fails to break through the resistance level of $56,400. Support on the downside near $54,400 is immediate.
First major support at $53,650. Next support will be near $53,200. In the short term, any further losses could send the price towards the support area of $52,000.
The following are 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 – $54,400, followed by $53,500.
Major Resistance Levels – $56,400, and $58,400.
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Source: www.newsbtc.com
