Bitcoin’s price action has hit a stumbling block, failing to break past the significant $60,650 resistance level. As a result, the digital currency is now undergoing a pullback, with potential declines looming towards the $57,500 support zone.
The cryptocurrency is currently trading well below the $60,000 mark, settling under the $58,800 level and the 100 hourly simple moving average. This downward movement was marked by a significant break below a crucial bullish trend line, which had previously held strong at $60,000 on the BTC/USD hourly chart.
Despite a promising rally commencing after Bitcoin breached the $58,500 resistance, allowing it to soar past the $59,500 mark and even cross the $60,000 threshold, the momentum waned near the $60,650 resistance. Reaching a peak at $60,638, the price began to retrace, dipping below the $59,500 level. This correction also saw it fall past the 23.6% Fibonacci retracement level of the upswing from $55,548 to $60,638.
Adding to the bearish signals, the break below the bullish trend line at $60,000 saw Bitcoin’s price slipping below $58,800 and its 100 hourly simple moving average. Currently, potential resistance lies close to the $59,200 mark. The more critical hurdle remains at $60,000, with a clear break above this level potentially instigating a steady increase. Should this scenario unfold, the next key resistance would be $60,650, and surpassing this could drive the price higher, possibly testing the $62,000 threshold.
However, if Bitcoin fails to overcome the $59,200 resistance, a further slide may be on the horizon. Immediate support is expected around the $58,000 level, aligning with the 50% Fibonacci retracement of the recent rise from $55,548 to $60,638. The major support level is positioned at $57,500, followed by a secondary support level near $56,750. A continued decline might see Bitcoin’s price approaching the $55,550 support in the short term.
Technical indicators are suggesting a bearish outlook. The hourly MACD is gaining momentum in the bearish zone, while the hourly RSI for BTC/USD has dipped below the neutral 50 level. Currently, the major support levels stand at $58,000 and $57,500, with resistance at $59,200 and $60,000.
