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TA: Bitcoin Holds Key Support, Why BTC Remains At Risk of Sharp Decline

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Cryptocoins News / NewsBTC 236 Views

Bitcoin retested the $55,500 support zone against the US Dollar. BTC is recovering, but it could face a strong selling interest near $57,500 in the near term.

  • Bitcoin settled below the key $58,000 and $57,500 resistance levels.
  • The price is now trading below $57,500 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is recovering, but upsides might be limited above the $57,500 resistance zone.
Bitcoin Price Remains At Risk

Bitcoin price started a fresh decline from the $59,500 zone. BTC gained pace below the $58,500 and $57,500 support levels to enter a bearish zone.

The decline gained pace below the $56,500 level and the price retested the $55,500 support zone. A low is formed near $55,633 and the price is now correcting losses. There was a break above the $56,500 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $59,411 swing high $55,633 low.

However, bitcoin price is now trading below $57,500 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

An immediate support is near the $56,500 level. The first major support is now forming near the $55,500 level. A downside break below the $55,500 level could spark more losses. In the stated case, the price might decline towards the $55,000 level. Any more losses may perhaps lead the price towards the $52,000 support zone in the near term.

Upside Capped In BTC?

If bitcoin stays above the $56,500 support, it could attempt a fresh recovery wave. On the upside, an initial resistance is near the $57,200 level. The first key resistance is near the $57,500 level.

It is near the 50% Fib retracement level of the downward move from the $59,411 swing high $55,633 low. The next major resistance sits near the $58,000 level and the 100 hourly simple moving average, above which the price might rise towards the $60,000 level.

Technical indicators:

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.


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