Bitcoin tested the $55,500 support area against the US Dollar. BTC has been recovering and could see a sharp selling interest of $57,000.
- Bitcoin was able to settle below the $57,500 and key $58,000 resistance levels.
- The price currently trades at $57,500.
- A major bearish trend line is emerging with resistance at $58,000 (data feed Kraken).
- While the pair appears to be on the rebound, upsides could be limited beyond $57.500.
Bitcoin price remains at risk
Bitcoin’s price began to fall again from $59,500. BTC moved below the $58,500 level and $57,000.500 support levels, indicating that it is entering a bearish zone.
As the price fell below $56,500, the price tested the $55,500 support level. The price has now corrected its losses and has reached a low of $55,633. A break was seen above the $56,500 mark. It climbed to 23.6% Fib level above the retracement of the downward movement from $59 411 swing high at $55,633 low.
Bitcoin price currently trades below $57,000. This is in line with the 100-hourly simple moving average. On the hourly chart for the BTC/USD pair, there is a significant bearish trend line with resistance at $58,000.
Source: BTCUSD from TradingView.com
The $56,500 level is the immediate support. At the $55,500 level, we are seeing the initial major support. Unexpected losses could be triggered by a downside breakout below $55,500. The price could fall towards $55,000 in the above scenario. In the short term, any further losses could lead to the $52,000 support level.
Upside Capped In BTC?
It could launch a new wave of recovery if bitcoin holds above the $56,500 level. The upside is that bitcoin’s initial resistance lies near $57,200. At the $57,000.500 level, is the initial resistance.
The 50% Fib Retracement level is the lowest point of the downmove from the swing low $55,633 high $59,411. Near the $58,000 and 100 hourly simple moving levels, there is a major resistance. If the price rises above that level, it could reach the $60,000 mark.
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still below the 50 level.
Major Support Levels – $56,500, followed by $55,500.
Major Resistance Levels – $57,500, $58,000 and $60,000.