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Bitcoin Price Trims Gains: Is The Recovery Losing Steam?

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Bitcoin price started to decline from the resistance area at $60,000. Bitcoin is now moving downward and may test the support area at $57,650.

  • Bitcoin started a fresh decline from the $60,000 resistance area.
  • The price is trading below the $58,800 level and the 100-hour simple moving average.
  • There was a break below a major bullish trend line with support at $59,700 on the hourly chart of the BTC/USD pair (data from Kraken).
  • The pair may attempt to establish a fresh high if it remains above the $57,650 area.

Bitcoin price drops again

Bitcoin price struggled to settle above the $60,000 resistance area. Bitcoin formed a top near the $60,200 level before the price started to decline again. There was a move below the $58,500 support area.

The price declined below the 23.6% Fib retracement level of the upward move from the $56,117 low to $60,210 high. Moreover, there was a break below a major bullish trend line with support at $59,700 on the hourly chart of the BTC/USD pair.

The pair retested the support area at $58,000. Bitcoin price is now trading below $59,000 and the 100-hour simple moving average. However, the price is still above the 50% Fib retracement level of the upward move from the $56,117 low to $60,210 high.

On the upside, the price could face resistance near the $58,800 level. The first major resistance is near the $59,500 level. A clear move above the $59,500 resistance could push the price higher in the coming sessions. The next major resistance could be at $60,000.

A close above the $60,000 resistance level could lead to further gains. In the mentioned case, the price could rally and test the $61,500 resistance level.

More BTC losses?

If Bitcoin fails to rise above the resistance area at $58,800, it could continue to decline. Immediate support on the downside is near the $58,000 level.

The first major support is $57,650. The next support is now near the $57,000 area. Any further losses could push the price towards the $55,500 or even $55,000 support area 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 – $58,000, followed by $57,650.

Key resistance levels – $58,800, $59,500.

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