Bitcoin price gained bearish momentum and traded below $60,000. BTC signals a short-term downtrend and could encounter hurdles near $62,000.
- Bitcoin started a new decline from the USD 62,550 resistance level.
- The price is trading below $61,500 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $62,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but upside could be limited above the $62,000 resistance zone.
Bitcoin price plunges
Bitcoin price failed to recover above the USD 63,500 level. BTC struggled above $63,000 and started falling again. There was a sharp decline below the USD 62,000 and USD 61,500 levels.
The price even fell below the $60,000 level. A low was formed at $58,448 and the price is now correcting losses. There was a small increase above the USD 59,800 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $64,460 swing high to the $58,448 low.
Bitcoin price is now trading below $61,500 and the 100 hourly Simple Moving Average. If a recovery wave comes, the price may encounter resistance near the USD 61,500 level.
The first major resistance could be $62,150, or the 50% Fib retracement level of the downward move from the $64,460 swing high to the $58,448 low. The next major resistance could be at USD 62,500. There is also a major bearish trendline forming with resistance at $62,400 on the hourly chart of the BTC/USD pair.
A clear move above the USD 62,500 resistance could trigger a steady rise and send the price higher. In the mentioned case, the price could rise and test the USD 63,500 resistance. Any further gains could send BTC towards the USD 65,000 resistance in the short term.
Another drop in BTC?
If Bitcoin fails to climb above the USD 62,500 resistance zone, it could continue to decline. The immediate downside support is near the USD 61,200 level.
The first major support is $60,000. The next support is now near $58,500. Any further losses could send the price towards the $57,000 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 61,200, followed by USD 60,000.
Major resistance levels – $62,150 and $62,500.