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TA: Bitcoin Starts Fresh Decrease, Why BTC Could Test $55k

NewsBTC

Cryptocoins News / NewsBTC 215 Views

Bitcoin failed to clear the $60,000 resistance zone against the US Dollar. BTC is moving lower, and it could extend losses towards $55,000 in the near term.

  • Bitcoin struggled to recover above the $60,000 and $60,500 resistance levels.
  • The price is now trading below $58,500 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $59,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is declining, and it seems like the bears are aiming more losses below $56,500.
Bitcoin Price Turns Red

Bitcoin price attempted a recovery wave above the $58,500 resistance zone. BTC spiked above the $60,000 zone, but there was no real bullish momentum.

As a result, the price started a fresh decline below the $59,200 level. The price traded below the $58,500 support zone and the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $59,200 on the hourly chart of the BTC/USD pair.

Bitcoin traded below the 50% Fib retracement level of the upward wave from the $55,674 swing low to $60,050 high. It is now trading below $58,500 and the 100 hourly simple moving average.

An immediate support is near the $57,350 level. It is close to the 61.8% Fib retracement level of the upward wave from the $55,674 swing low to $60,050 high. The first major support is now forming near the $56,500 level. A downside break below the $56,500 level could spark more losses.

Source: BTCUSD on TradingView.com

The main support is near the $55,500 and $55,000 levels. Any more losses may perhaps set the pace for a move towards the $52,000 support zone in the near term.

Fresh Recovery In BTC?

If bitcoin stays above the $56,500 support, it could start a fresh increase. On the upside, an initial resistance is near the $58,000 level.

The first key resistance is near the $58,500 level and the 100 hourly simple moving average. The next major resistance sits near the $59,200 level, above which the price might rise towards the $60,000 level. Any more gains could lead the price towards the $61,200 level.

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 now below the 50 level.

Major Support Levels – $56,500, followed by $55,500.

Major Resistance Levels – $58,500, $59,200 and $60,000.


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