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TA: Bitcoin Close Below $56K Could Spark A Larger Decline

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Cryptocoins News / NewsBTC 167 Views

Bitcoin is struggling to surpass the $57,200 resistance against the US Dollar. BTC is declining and it might accelerate lower if there is a close below the $56,000 support.

  • Bitcoin is struggling to move above the $57,000 and $57,500 levels.
  • The price is now trading below $57,000 and the 100 hourly simple moving average.
  • There is a key contracting triangle forming with support near $56,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could accelerate lower if there is a clear break below the $56,000 support zone.
Bitcoin Price is Facing Hurdles

Bitcoin price failed to start a decent increase above the $58,000 resistance zone. BTC started a slow decline, and it broke the $57,200 support level to enter a bearish zone.

There was also a close below $57,000 and the 100 hourly simple moving average. However, the bulls are defending the $56,000 support level. The recent low was formed near $55,848 and bitcoin is now consolidating losses above the $56,000 level.

An immediate resistance on the upside is near the $56,600 level. It is near the 23.6% Fib retracement level of the recent decline from the $59,090 swing high to $55,848 low.

The first major resistance is near the $57,000 level. There is also a key contracting triangle forming with support near $56,100 on the hourly chart of the BTC/USD pair. The next major resistance is near $57,500. It is close to the 50% Fib retracement level of the recent decline from the $59,090 swing high to $55,848 low.

A clear break above the $57,500 resistance zone could open the doors for more upsides. The next key resistance is near the $58,500 level, above which the price could rise steadily. The next stop for the bulls may possibly be near the $60,000 level.

More Losses In BTC?

If bitcoin fails to clear the $57,500 resistance zone, it could extend losses. An immediate support on the downside is near the $56,100 level.

The first major support is now forming near the $56,000 level. A downside break below the $56,000 support may perhaps start a sharp decline. The next stop for the bears might be $53,500.

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 currently below the 50 level.

Major Support Levels – $56,000, followed by $55,000.

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


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