The shaky grounds of Bitcoin, exhibiting an inability to sustain a recovery wave beyond the $58,500 resistance zone, has unveiled a downward trend once again. Financial experts anticipate that the most popular cryptocurrency globally will plunge further, perhaps even dip below $54,000.
Bitcoin’s value, which momentarily bloomed above $58,000, has taken a swift turn towards instability. Currently, it finds itself rockier than ever in the harsh terrain below the $56,500 territory. Observations also revealed that the cryptocurrency had strayed below the 100 hourly Simple moving average, an indicator of potential financial turbulence.
Bitcoin faced a continual resistance from a bearish trend that formed a wall at $56,350. This strained the Bitcoin-U.S Dollar pair, leading to a standstill in growth and making investors speculate about the cryptocurrency’s future performance.
After a commendable rally above the $57,000 mark, Bitcoin surged past $58,000. However, this bullish dance was cut short as bears sprung into action near the $58,500 resistance zone. Despite reaching an impressive high at $58,396, the bull couldn’t sustenance and went into a downward spiral.
The bearish onslaught breached the $57,000 mark in a downward spree, creating a fresh low near $54,301. Speculators remained on the edge as Bitcoin began consolidating its losses, allowing for a marginal increase to the 23.6% Fibonacci retracement level. This move corresponded with the downfall from a high of $58,396 to its current low.
The curtain of uncertainty hangs ominously as the currency continues to hover below $56,500 and beneath the 100 hourly Simple moving average. The immediate resistance to counter Bitcoin’s growth seems to flaunt a $56,000 banner. Furthermore, a key resistance lurks near $56,400, amplifying the tension.
Tracking the Bitcoin-U.S. Dollar pair, a steady bearish trend connecting to this resistance unfolds at $56,350. The trend falls closely near the 50% Fibonacci retracement level of the downward tumble from the $58,396 peak to its $54,301 slump. Any subsequent progression beyond this trend line may ignite a swift spike to the $57,400 level.
If Bitcoin can overcome the daunting $58,400 resistance, it will spark a steady rise, potentially shooting the cryptocurrency higher. This acceleration may set the stage for Bitcoin to challenge the formidable $60,000 resistance in ensuing sessions.
Nevertheless, looming losses threaten Bitcoin. Failure to topple the $56,400 barrier exposes an immediate dip near $54,400. The next support lies at $53,200, promising a harrowing fall as it inches toward the dreaded $52,000 support zone.
Several technical indicators highlight the potential bearish tendencies of Bitcoin. The Moving Average Convergence Divergence (MACD) exhibit increasing growth in the bearish zone while the Relative Strength Index (RSI) for BTC/USD slips below the crucial 50 level. The primary support levels loom at $54,400 and $53,500 while resistance congregates at $56,400 and $58,400.
