The elusive allure of Bitcoin has taken another hit, failing to gather momentum for a recovery above the $61,500 resistance level. This marked the onset of a fresh decline, indicating the cryptocurrency may well be poised to dive toward a disheartening $55,000.
The latest downward trend found Bitcoin falling short of the $58,500 mark, continuing its slump in an already bearish market. Notably, the price was trading below the preceding $60,000 watermark, drifting away from its 100 hourly Simple Moving Average.
Analysts are pointing to the formation of a key bearish trend line as the significant obstacle, with resistance materializing around the $58,350 mark. Tracing the hourly path of the BTC/USD pair, it’s apparent the Bitcoin might be hard-pressed to rally above the $60,000 resistance zone.
The continued losses for Bitcoin came as the cryptocurrency failed to wage a successful battle against the opposing $61,500 resistance forces. The market’s bears pressed on, pushing the BTC below the standing support zone of $60,000. The fall was sharp — and painful– as the price dipped below the $58,500 mark.
The sweeping downward cascade was relentless, forcing the price to spike below the $57,000 mark. The fallout was tremendous, a low near $56,650 that consolidated losses and underscored the challenging landscape. Indeed, it appears that the bulls are faltering, unable to initiate a recovery from this new low. The Bitcoin price is languishing well below the 23.6% Fib retracement level, originating from a downward trajectory that swooped from a high of $63,800 to a lull of $56,650.
Bitcoin’s price dynamics continue to evolve. It now hovers below $60,000, and its 100 hourly Simple moving average. The emerging bearish trend line is solidifying around a resistance of $58,350. If there’s a revival, the first face-off will be at the $57,500 level. The primary resistance is located around the $58,350 mark. A clear climb over this obstacle could propel the BTC to the $60,000 level.
The journey after this point is likely to encounter a key resistance at $60,200, which coincides with the 50% Fib retracement level from the earlier catastrophic fall. Should the Bitcoin price surge past the $60,200 resistance, it could set off an incremental rise and loft the price higher. If this case unfolds, the future could hold a potential test of the $61,500 resistance.
However, should Bitcoin fail to overcome the $58,350 hurdle, a further decline seems inevitable. Immediate support looms at the $56,650 level, with the next safety net positioned at $55,800. If the price continues to plummet, it may well find itself at the $55,000 support zone in the near term.
Technical indicators spotlight an accelerating pace in the bearish zone for the hourly MACD. Concurrently, the hourly RSI for BTC/USD is languishing below the 50 mark, signaling a weak Relative Strength Index. Major support levels to watch are $56,650 and $55,000, while significant resistance levels are poised at $58,350 and the formidable $60,000.
