Bitcoin price failed to make a recovery wave above the $61,500 resistance zone. BTC started another decline and may plunge to $55,000.
- Bitcoin is down again, trading below $58,500.
- The price is trading below $60,000 and the 100 hourly simple moving average.
- According to data provided by Kraken, there is a resistance line forming at $58,350 on the hourly chart of BTC/USD, forming a major downtrend line.
- The pair may struggle to start a new uptrend above the $60,000 resistance zone.
Bitcoin price losses widen
Bitcoin price struggled to start a decent recovery wave above the $61,500 resistance level. The bears continued to be active and pushed BTC below the $60,000 support level. There was a sharp decline below the $58,500 level.
The price has also surged below the $57,000 level. A low has been formed at $56,650 and the price is currently consolidating losses. The bulls seem to be struggling to make a recovery wave at the $56,650 level as the price is well below the 23.6% Fibonacci correction level from the $63,800 swing high to the $56,650 low.
Bitcoin price is currently trading below $60,000 and the 100-hourly simple moving average. There is also a major downtrend line forming with resistance at $58,350 on the hourly chart of the BTC/USD pair.
If there is a proper uptrend, the price may face resistance near the $57,500 level. The first major resistance is near the $58,350 level and the trend line. A significant move above the trend line could push the price towards the $60,000 level.
The next major resistance level could be the 50% Fibonacci correction level of the downtrend from the $60,200 and $63,800 swing highs to $56,650 lows. A clear move above the $60,200 resistance could start a steady uptrend, pushing the price higher. If it is noted, the price could rise and test the $61,500 resistance.
Could More Losses Come From Bitcoin?
If Bitcoin fails to break above the $58,350 resistance zone, it could continue to decline. Immediate support for the downtrend lies near the $56,650 level.
The first major support is at $56,200. The next support is currently forming near $55,800. If there is further loss, the price could move towards the $55,000 support area 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 – $56,650, then $55,000.
Key resistance levels – $58,350 and $60,000.