Bitcoin Price Signals Bearish Continuation, Why BTC Could Drop Below $60K

Bitcoin price started a new decline from the $62,000 resistance area. BTC is falling and remains at risk of further losses below the $60,000 level.

  • Bitcoin started a new decline after failing near $62,000.
  • The price is trading below the $61,000 level and the 100 hourly simple moving average.
  • There was a breakout below the bearish flag pattern with support near $60,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain downside momentum if there is a close below $60,000.

Bitcoin price signals collapse

Bitcoin price found support near the $60,250 area and started a recovery wave. BTC managed to recover above the 23.6% Fibonacci retracement level of the downward move from the high of $63,217 to the low of $60,250.

However, the bears were active near the $61,800 resistance area. They defended the 50% Fib retracement level of the downward move from the high of $63,217 to the low of $60,250. There was a fresh bearish reaction below the $61,200 support area.

There was a breakout below the bearish flag pattern with support near $60,950 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $61,000 and the 100 hourly simple moving average.

Immediate resistance is located near the $61,200 level. The first major resistance could be $62,000 or the 100 hourly simple moving average. The next major resistance could be $62,500. A clear move above the $62,500 resistance level could send the price higher.

source: BTCUSD on TradingView.com

The main resistance now lies at $63,500. If there is a close above the $63,500 resistance area, the price may continue to rise. In the aforementioned case, the price may rise to about $65,000.

More negatives in BTC?

If Bitcoin fails to rise above the $61,200 resistance area, it may continue to move lower. Immediate support on the downside is near the $60,500 level.

The first major support is $60,000. If there is a close below $60,000, the price may start to fall towards $58,500. Any further losses could send the price towards the $56,650 support area in the near term.

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.

Key Support Levels – $60,500, followed by $60,000.

Major resistance levels – $61,200, $62,200, and $62,500.

60KBearishBitcoinBTCContinuationdropPriceSignals
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