Bitcoin Faces Resistance and Dips
Bitcoin is currently struggling to surpass the $59,500 and $60,000 resistance levels, facing a significant barrier. As a result, the price of BTC has started another decline after peaking near the $59,500 resistance zone. The recent movement saw a drop below the $58,500 level, leading to further decline.
The price slipped below crucial support levels at $57,800 and $57,500, eventually reaching the $56,600 zone. After hitting a low of $56,593, the price is now consolidating its losses. Currently, Bitcoin is trading near the 23.6% Fibonacci retracement level of the downward trajectory from the $58,963 swing high to the $56,593 low.
However, Bitcoin is now trading below $57,500 and the 100-hourly simple moving average. The immediate resistance remains near the $57,750 mark, with the first significant hurdle at $58,000 or the 61.8% Fibonacci retracement level from the recent swing high to the low.
To potentially trigger a substantial uptrend, Bitcoin must convincingly breach the $58,000 resistance. Following this breakout, the price could face further resistance at $58,500. Notably, a crucial declining channel is forming with resistance at $58,400 on the hourly BTC/USD chart.
Possible Further Declines for Bitcoin
- If Bitcoin fails to overcome the $58,000 resistance, it might witness a continued decline.
- The immediate support lies near the $56,600 level, followed by significant support at $56,000.
- Subsequently, the next support level is around $55,000, with further losses potentially pushing the price towards the $53,500 support zone in the short term.
Regarding technical indicators:
- The hourly MACD is currently trending lower in the bearish territory, indicating a negative sentiment.
- The hourly RSI for BTC/USD has dropped below the 50 level, signifying increased selling pressure.
Key Levels to Watch:
- Major Support Levels – $56,500, followed by $55,000.
- Major Resistance Levels – $58,000, and $58,500.
Hot Take: Bitcoin Struggles Against Resistance
As Bitcoin faces strong resistance at the $59,500 and $60,000 levels, its price movement is pivotal. The failure to break past these key resistance zones could lead to further declines, with immediate support at $56,600. Traders should closely monitor the $58,000 level for a potential breakout triggering additional buying pressure. However, sustained rejection could push the price towards the $55,000 and $53,500 support levels. Technical indicators suggest a bearish outlook, highlighting the need for caution in trading decisions.
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