Bitcoin Tumbles 5%, Sliding Below the $60,000 Resistance Threshold

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In a fresh plunge into volatility, Bitcoin (BTC) has seen yet another slump in its price, a 5% drop taking it to as low as $58,000. Having failed yet again to start a positive surge beyond the resistance threshold of $62,850, the otherwise unprecedented rally of the digital currency is caught in a rollercoaster ride.

Bitcoin embarked on a decline, breaking below the previous benchmark of $60,000. At present, the cryptocurrency is priced below $61,500, with its 100-hour simple moving average further indicating a bearish trend. Notably, a negative trend line is being charted with a resistance of $60,000 on the hourly data snapshot for the BTC/USD pair – a direct data feed from Kraken, triggering speculation on whether the pair would manage a rally beyond the $60,850 resistance zone.

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The digital kingcoin underwent a struggle to jumpstart a fruitful recovery wave above the $62,850 barrier, eventually giving in to the bears who pressed the virtual currency below its $61,200 secure zone, leading to a sharp dip beneath the $60,000 level.

A subsequent 5% decline followed, spiraling the price downwards even past $58,000. It bottomed out at $57,890 and has since been on a recovery track to consolidate its losses. The price did witness a slight rise above the $58,500 and closed in on the 23.6% Fibonacci retracement level from the fall between keenly watched figures – $63,798 (swing high) to $57,890 (the low point).

However, the Bitcoin price still lurks below the $61,500 threshold and the 100-hour simple moving average. The negative trend line with a resistance at $60,000 on the hourly data is still visible. Should there emerge a respectable increase, it could be met with a resistance close to the $60,000 mark. The first significant resistance is anticipated around the $60,850 level and the 50% Fibonacci retracement level from the aforementioned fall.

The subsequent major hurdle comes in at $61,500. A clear rally above this sweeping resistance might trigger a steady hike and propel the Bitcoin price northwards. In such a scenario, the price could surge to test the next resistance zone at $62,250. With added gains, Bitcoin could shoot towards the $63,500 resistance in near future.

Alternatively, if Bitcoin fails to scale past the $60,000 resistance threshold, there could be possibilities of a continued descent. An immediate downside support is predicted near $58,250. Primary support thresholds lie at $58,000 before stabilizing around $57,800. More losses could steer the price towards the immediate support zone of $56,500.

In terms of technical indicators, the hourly Moving Average Convergence Divergence (MACD) is picking up pace in the bearish spectrum, while the hourly Relative Strength Index (RSI) for BTC/USD has now sunk below the critical 50-mark, indicating a major downturn in buying pressure. Ultimately, the major support and resistance levels to watch are $58,250, $58,000 and $59,250, $60,000 respectively, as Bitcoin prices continue to fluctuate in an unpredictable market.