This article is also available in Spanish.
Bitcoin price has started another downtrend below the $57,200 zone. BTC is in a downtrend and may soon test the $55,000 support zone.
- Bitcoin is gaining speed below the $58,000 support zone.
- The price is trading below $57,500 and the 100 hourly simple moving average.
- The bullish trend line connecting the support level at $58,900 has broken down on the hourly chart of the BTC/USD pair (data provided by Kraken).
- The pair may struggle to recover above the resistance levels of $57,650 or $58,000 in the short term.
Bitcoin price hit
Bitcoin price extended its downtrend below the $57,500 support level. BTC was also trading below the $57,200 support level. There was a break below the bullish trend line connected to the $58,900 support on the hourly chart of the BTC/USD pair.
A low was formed at $55,591, and the price recently started a recovery wave. It moved above the $56,000 and $56,200 resistance levels. It broke the 23.6% Fibonacci correction level of the downtrend from the $59,773 swing high to the $55,591 low.
Bitcoin is currently trading below $58,000 and the 100-hourly simple moving average. On the upside, the price could face resistance near the $57,650 level or the 50% Fibonacci correction level of the downtrend from the $59,773 swing high to the $55,591 low.
The first major resistance is near the $58,000 level. If the $58,000 resistance is clearly broken, the price may move higher in the next session. The next major resistance could be $58,800. A close above the $58,800 resistance could trigger further upside. In the case mentioned, the price may rise and test the $60,000 resistance.
Another downside to Bitcoin?
If Bitcoin fails to break above the $58,000 resistance zone, another downtrend could begin. Immediate support for the downtrend is near the $56,350 level.
The first major support is at $55,500. The next support is now near the $55,200 area. If there is further loss, the price could move towards the $53,500 support in the short term.
Technical indicators:
Hourly MACD – MACD is currently gaining momentum in a downtrend.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
Key support levels – $56,350, then $55,500.
Key resistance levels – $57,650 and $58,000.