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Bitcoin price extended losses below the USD 58,500 support zone. BTC is struggling and could continue to decline towards the $55,000 support zone.
- Bitcoin is gaining pace below the $60,000 support zone.
- The price is trading below $59,000 and the 100 hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $58,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend losses if it fails to hold above the $57,200 support.
Bitcoin Price Extends Losses
Bitcoin price started declining again and traded below the $60,000 support level. The bears managed to push the price below the USD 58,500 support level. BTC even peaked below $57,200.
A low was formed at $57,124 and the price is now consolidating losses. There was a small recovery wave, but the price remained well below the 23.6% Fib retracement level of the recent decline from the $60,954 swing high to the $57,124 low.
Bitcoin is now trading below $60,000 and the 100 hourly Simple Moving Average. A connecting bearish trendline is also forming with resistance at $58,400 on the hourly chart of the BTC/USD pair.
On the upside, the price could encounter resistance near the USD 58,000 level. The first major resistance is near the $58,400 level and trendline. A clear move above the USD 58,400 resistance could push the price further higher in the coming sessions.
The next major resistance could be $59,040, or the 50% Fib retracement level from the recent decline from the $60,954 swing high to the $57,124 low. A close above the resistance at $59,040 could provide more upside. In the mentioned case, the price could rise and test the USD 60,000 resistance.
More disadvantages of BTC?
If Bitcoin fails to rise above the USD 58,400 resistance zone, it could trigger another decline. The immediate downside support is near the $57,200 level.
The first major support is $56,500. The next support is now near the $56,200 zone. Any further losses could send the price towards the USD 55,000 support 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 57,200, followed by USD 56,500.
Major resistance levels – $58,000 and $58,400.