Bitcoin has struggled to rebound above $57500 against the US Dollar. BTC’s decline is likely to accelerate below $55,000 soon.
- Bitcoin faces resistance at the $57,500 and $58,000 levels.
- The price currently trades at $57,500.
- A crucial bearish trend line is emerging with resistance at $57,300 (data feed Kraken).
- It is likely that the pair will slide even further below $55,500.
Bitcoin Price Faces Woes
The Bitcoin price tried to break the $58,000 resistance level and made another up-trend. BTC did not gain enough strength to make a move beyond the $58,000 and $57.500 levels.
Near $57.850, a high was reached and prices began to decline again. A break was seen below $57.500 and $57.200. Bears drove the price lower than the 50% Fib Retracement level for the upward movement from $55,362 swing low down to $57,850 high.
Bitcoin trades below $57,000. This is in line with the simple 100-hour moving average. On the hourly chart for the BTC/USD pair, there is a key bearish trend line that forms with resistance at $57,000.
Support is located near $56,300. This is near the 61.8% Fib level of the upward movement from $55,362 low to $57,000. Near the $56,000 mark, we now see the first significant support. Main breakdown support remains at the $55,500 level.
Source: BTCUSD from TradingView.com
An even greater loss could result if the price falls below $55,500. If this happens, then the price may even drop below $55,000. Next major support may be at the $53,200 level.
Upside Limited in BTC
It could launch a fresh wave of recovery if bitcoin holds above the $55,500 level. Positively, initial resistance lies near $57,000.
Near the trend line area and $57,500 is the first major resistance. Next is the $57850 level. This level also includes the 100 hourly simple movement average. If the latter falls, then the price may rise to $59,200.
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 below the 50 level.
Major Support Levels – $56,000, followed by $55,500.
Major Resistance Levels – $57,200, $57,500 and $58,000.