Bitcoin Price Decline Persists: Prepare for Further Losses
Bitcoin’s price downtrend continues as it struggles to recover above the $58,500 resistance level, signaling potential further losses below $54,000.
The recent decline in Bitcoin saw it trading below the $56,500 zone and the 100 hourly Simple Moving Average. On the hourly chart of the BTC/USD pair from Kraken, a bearish trend line is forming with resistance at $56,350. The pair faces challenges in initiating an upward movement beyond the $58,000 resistance zone.
Despite a brief recovery above $57,000 and $58,000, Bitcoin faced resistance near $58,500, leading to a drop below $57,000 and $56,500 levels. The price hit a low near $54,301 before consolidating losses. A minor uptick towards the 23.6% Fib retracement level was observed from the swing high of $58,396 to the low of $54,301.
Currently, Bitcoin remains below $56,500 and the 100 hourly Simple Moving Average, with immediate resistance near $56,000 and a key resistance level at $56,400. A bearish trend line with resistance at $56,350 is also in play, close to the 50% Fib retracement level. A clear break above this trend line could push the price towards $57,400, with the next significant resistance at $58,400.
A breach above the $58,400 resistance could pave the way for a sustained uptrend, potentially testing the $60,000 resistance in the near term. However, failure to surpass the $56,400 resistance may lead to further downward movement. Immediate support lies near $54,400, followed by major support levels at $53,650 and $53,200, with a potential drop towards the $52,000 support zone.
Technical indicators suggest a bearish outlook, with the hourly MACD gaining momentum in the bearish zone and the RSI for BTC/USD below the 50 level. Key support levels include $54,400 and $53,500, while major resistance levels are at $56,400 and $58,400.
In conclusion, Bitcoin’s price remains under pressure, with the potential for further losses if key resistance levels are not breached. Traders are advised to monitor support and resistance levels closely to navigate the current market conditions effectively.
