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Bitcoin price has started to decline again below the $57,200 area. Bitcoin is showing bearish signs and may soon test the support area at $55,000.
- Bitcoin is gaining momentum below the $58,000 support area.
- The price is trading below the $57,500 level and the 100-hour simple moving average.
- There was a break below the bullish trend line connected with support at $58,900 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair may struggle to recover above the $57,650 or $58,000 resistance levels in the near term.
Bitcoin price takes a hit
Bitcoin price losses extended below the $57,500 support level. Bitcoin also traded below the $57,200 support level. There was a break below the ascending trend line connected to the $58,900 support level on the hourly chart of the BTC/USD pair.
The low was formed at $55,591 and the price recently started a recovery wave. There was a move above the $56,000 and $56,200 resistance levels. It surpassed the 23.6% Fib retracement level of the downside move from the $59,773 swing high to $55,591 swing low.
Bitcoin is now trading below $58,000 and the 100-hour simple moving average. On the upside, the price could face resistance near the $57,650 level or the 50% Fib retracement level of the downside move from the $59,773 high to $55,591 low.
The first major resistance is near the $58,000 level. A clear move above the $58,000 resistance could push the price higher in the coming sessions. The next major resistance could be at $58,800. A close above the $58,800 resistance could lead to further gains. In the mentioned case, the price could rally and test the $60,000 resistance level.
Are there more negatives to BTC?
If Bitcoin fails to rise above the $58,000 resistance area, it could start declining again. Immediate support on the downside is near the $56,350 level.
The first major support is $55,500. The next support is now near the $55,200 area. Any further losses could push the price towards the $53,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key Support Levels – $56,350, followed by $55,500.
Key resistance levels – $57,650, $58,000.