Bitcoin Faces Bearish Trend as it Struggles Below $60,000 Mark

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The dynamo of the cryptocurrency world, Bitcoin, has faltered in its recent upward trend, as it recently dipped below $60,000. This downward spiral has set off alarms, indicating a potential short-term bearish trend that could pose significant challenges for the crypto giant as it approaches the $62,000 mark.

Fresh off a plunge that started at the $62,550 resistance level, Bitcoin’s value is wavering below the $61,500 mark in addition to the 100 hourly Simple moving average, a popular method of technical analysis utilized by traders. Further exacerbating these unfavorable circumstances, a critical bearish trend line is materializing, offering resistance at around $62,400, as indicated by the BTC/USD hourly chart pair, with data derived from the cryptocurrency exchange, Kraken.

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Despite this downturn, Bitcoin could potentially rectify its losses and edge back up, albeit, gains may be stifled at the $62,000 resistance slot.

In recent times, the price of Bitcoin has behaved like a rollercoaster, failing to regain traction above the $63,500 level, and each attempt to ascend beyond the $63,000 mark hit a snag and spurned a further descent. This precipitous drop has pierced through the $62,000 and $61,500 thresholds and continuing to plummet below $60,000.

During this string of declines, Bitcoin reached a low at $58,448 but has since been making minor adjustments to recoup its losses. A silver lining appears as Bitcoin managed a modest climb above the $59,800 level, shifting past the 23.6% Fibonacci retracement level. This shift marks the descent from the $64,460 swing high to the $58,448 trough.

With Bitcoin’s price remaining under $61,500 and the 100 hourly Simple moving average, its recovery chances could face opposition near the $61,500 mark. The first major hurdle could emerge at $62,150 or the potentially at 50% Fibonacci retracement level—which demarcates the drop from the $64,460 swing high to $58,448 low. Successive resistance may occur at $62,500, echoing the bearish trend line.

Overcoming the $62,500 resistance might trigger a slow but steady increase, pushing the price higher. In that scenario, Bitcoin could see a resurgence that tests the $63,500 resistance. Any additional advances might nudge Bitcoin closer to the $65,000 resistance mark in the foreseeable future.

However, a failure to ascend beyond the $62,500 resistance zone could provoke a continued downturn. Immediate support on the downside presently hovers near the $61,200 level. Major support stands at $60,000, with ensuing support shaping up near the $58,500 mark. Extra losses could potentially plunge Bitcoin’s price to the $57,000 support region.

Examining the technical indicators, both the hourly MACD and hourly Relative Strength Index (RSI) underscore this bearish trend, with the MACD registering a progressive gain in the bearish zone, and RSI for BTC/USD dipping beneath the 50 level. Consequently, potential resistance and support levels may be both enticing and daunting gates of return for Bitcoin traders and investors.