Bitcoin price started a consolidation phase near the $58,500 level. Bitcoin must clear the $60,500 resistance level to start a recovery wave in the near term.
- Bitcoin tested the $58,000 area before there was a slight recovery.
- The price is trading below the $62,000 level and the 100-hour simple moving average.
- A major bearish trend line is forming with resistance at $60,200 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair is likely to decline again if there is no move above the $60,500 resistance level.
Bitcoin price begins to consolidate
Bitcoin price gained bearish momentum below $62,500. The price even dropped below $60,000. Finally, bulls appeared near $58,000.
The low was formed at $58,009 and now the price is trying to consolidate its losses. There was a slight recovery wave above the $58,500 and $58,800 levels. The price tested the 23.6% Fib retracement level of the downward wave from the $65,070 swing high to $58,009 swing low.
Bitcoin is now trading below $61,200 and the 100-hour simple moving average. On the upside, the price could face resistance near the $59,650 level. The first major resistance is near the $60,000 level. A major bearish trend line is also forming with resistance at $60,200 on the hourly chart of the BTC/USD pair.
A clear move above the $60,200 resistance could push the price higher in the coming sessions. The next major resistance could be at $61,500. It is close to the 50% Fib retracement level of the downward wave from the $65,070 swing high to $58,009 swing low.
A close above the $61,500 resistance level could lead to further gains. In the mentioned case, the price could rally and test the $62,500 resistance level.
Are there more negatives to BTC?
If Bitcoin fails to rise above the $60,200 resistance area, it could continue to decline. Immediate support on the downside is near the $58,550 level.
The first major support is $58,000. The next support is now near the $57,650 area. Any further losses could push the price towards the $56,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing momentum in the bearish zone.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key Support Levels – $58,550, followed by $58,000.
Key resistance levels – $60,200, $61,500.