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Bitcoin Price Drifts Lower: Will the Grind Continue?

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Bitcoin price losses extended below the $58,500 support area. Bitcoin is struggling and may continue moving towards the $55,000 support area.

  • Bitcoin is gaining momentum below the $60,000 support area.
  • The price is trading below the $59,000 level and the 100-hour simple moving average.
  • There is a connected bearish trend line forming with resistance at $58,400 on the hourly chart of the BTC/USD pair (data from Kraken).
  • The pair may extend its losses if it fails to stay above the $57,200 support level.

Bitcoin Price Extends Losses

Bitcoin price started to decline again and was trading below the $60,000 support level. The bears managed to push the price below the $58,500 support level. Bitcoin even rose below $57,200.

A low was formed at $57,124 and the price is now trying to consolidate its losses. There was a slight recovery wave, but the price remained well below the 23.6% Fib retracement level of the recent decline from the $60,954 high to $57,124 low.

Bitcoin is now trading below $60,000 and the 100-hour simple moving average. A connected bearish trend line is forming with resistance at $58,400 on the hourly chart of the BTC/USD pair.

On the upside, the price could face resistance near the $58,000 level. The first major resistance is near the $58,400 level and the trend line. A clear move above the $58,400 resistance could push the price higher in the coming sessions.

source: BTCUSD on TradingView.com

The next major resistance could be at $59,040 or the 50% Fib retracement level of the recent decline from the $60,954 high to $57,124 low. A close above the $59,040 resistance could lead to further upside. 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 resistance area at $58,400, it could start declining again. Immediate support on the downside is near the $57,200 level.

The first major support is $56,500. The next support is now near the $56,200 area. Any further losses could push the price towards the $55,000 support level 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 – $57,200, followed by $56,500.

Key resistance levels – $58,000, $58,400.

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