Bitcoin Resumes Decline, What Could Trigger More Downsides

The Bitcoin price fell below $60,000, and it has begun a new decline in relation to the US Dollar. In the short term, BTC may experience losses of up to $55,000

  • Bitcoin began a new decline after the $61,000 resistance area.
  • The price currently trades at $58,000.
  • The hourly BTC/USD chart shows a bearish trendline with resistance close to $58,000 (data feed Kraken).
  • In the short term, this pair may suffer losses of $55,500 to $55,000.

Bitcoin Price Gains Bearish Momentum

The Bitcoin price tried to recover above $60,000 and reached a new high. BTC lost strength at $60,000.500, and it began a new decline. The 100-hourly simple moving average and $60,000 saw a steep decline.

For a fall below $58,000, the bears gained momentum. So low was the price that it traded as low as $56,500 The price traded at a bearish angle, with the low being around $55,858.

Near the $56,500 threshold is the first resistance. It is located near the $57,000 threshold. This is near the 23.6% Fib level of the decline from the 60,964 swing high and the $55,858 low. On the hourly chart for the BTC/USD pair, there is a bearish trend line that has resistance at $58,000.

Resistance is currently forming at the $58,000-$58,000 levels. The Fib level at 50% retracement of the decline from $60,964 high to $55,858 low is now within reach.

Bitcoin Price

An actual close above the $58,500 mark could be the catalyst for a sustained recovery. Next is resistance at the $59800 and $60,000 levels. A move to the $61,200 level could be possible with any additional gains.

BTC Losses:

Bitcoin could continue to decline if it fails to rise above $58,000. The $55,500 level is a support area for the downside.

Now, the initial major support is forming at or near $55,200. Near the $55,000 support level is the next significant support. Below which bears could aim for more downsides. If the above scenario is true, then the price might slide toward the $53,500 support level.

Indicators technical

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $55,500, followed by $55,000.

Major Resistance Levels – $56,500, $57,000 and $58,500.

Get more Crypto News at CFX Magazine