Bitcoin price started declining again from the $59,500 level. BTC is moving lower and the bears could gain strength below the USD 56,000 support.
- Bitcoin started to decline again from the USD 59,500 resistance zone.
- The price is trading below $57,500 and the 100 hourly Simple Moving Average.
- A major descending channel is forming with resistance at $58,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it fails to hold above the $56,500 support.
Bitcoin price drops again
Bitcoin price struggled to break the USD 59,500 and USD 60,000 resistance levels. BTC peaked near the USD 59,500 resistance zone and recently started falling again. There was a move below the USD 58,500 level.
The price fell below the USD 57,800 and USD 57,500 support levels. It tested the $56,600 zone. A low was formed at $56,593 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level of the downward move from the $58,963 swing high to the $56,593 low.
Bitcoin price is now trading below $57,500 and the 100 hourly Simple Moving Average. The immediate resistance on the upside is near the $57,750 level. The first major resistance is near the $58,000 level or the 61.8% Fib retracement level of the downward move from the $58,963 swing high to the $56,593 low.
A clear move above the USD 58,000 resistance could trigger a decent upside in the coming sessions. The next major resistance could be at USD 58,500. A major descending channel is also forming with resistance at $58,400 on the hourly chart of the BTC/USD pair.
The next big hurdle is at $59,500. A close above the USD 59,500 resistance could trigger a steady rise and send the price higher. In the mentioned case, the price could rise and test the USD 60,000 resistance.
More disadvantages of BTC?
If Bitcoin fails to climb above the $58,000 resistance zone, it could continue to decline. The immediate downside support is near the $56,600 level.
The first major support is $56,000. The next support is now near $55,000. Any further losses could send the price towards the $53,500 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 56,500, followed by USD 55,000.
Major resistance levels – $58,000 and $58,500.