Bitcoin price has failed to initiate a recovery wave above the crucial $61,500 resistance zone, causing the leading cryptocurrency to start another downward spiral. As a result, Bitcoin may potentially drop towards the $55,000 mark. The failure to break above $61,500 has led to a bearish trend, with BTC trading below the $60,000 level and the 100 hourly Simple Moving Average.
Bears Remain in Action
The bears have been in control, pushing the price below the $60,000 support zone and triggering a sharp decline below $58,500. In fact, the price even dipped below $57,000, hitting a low of $56,650 before consolidating losses. Despite attempts by the bulls to start a recovery wave from the $56,650 level, the price remains significantly below the 23.6% Fibonacci retracement level from the high of $63,800 to the low of $56,650.
Bitcoin’s price is currently facing a major hurdle around the $58,350 resistance level, as indicated by a key bearish trend line on the hourly chart of the BTC/USD pair. If there is a successful breakthrough, the price could encounter further resistance near $57,500 and subsequently at $60,000. A clear move above $60,200, combined with a break of the 50% Fibonacci retracement level, may signal a sustainable uptrend.
Should Bitcoin fail to surpass the $58,350 resistance zone, a continuation of the downward trend is probable. Immediate support is expected near the $56,650 level, followed by major support at $56,200. The subsequent support level is forming around $55,800, with further losses potentially leading to a drop to the $55,000 support zone in the short term.
Technical Indicators
Hourly MACD for Bitcoin is currently showing increased bearish momentum, with the MACD trending in the bearish zone. The Hourly Relative Strength Index (RSI) for BTC/USD is also below the 50 level, indicating a bearish sentiment among traders.
Bitcoin’s failure to break above key resistance levels has resulted in a bearish trend, with the price struggling to recover. While there is potential for a turnaround, the immediate focus remains on overcoming resistance levels and finding support to prevent further declines. Traders should monitor these levels closely to gauge the next potential price movements in the cryptocurrency market.