Bitcoin continued to decline and fell to the level of $ 55,000 with the last wave. According to technical analysis by NewsBTC’s Aayush Jindal, it could drop below $55,000 in the short term.
Bitcoin Gains Bearish Momentum
Bitcoin attempted a recovery above $60,000 but failed to gain strength and started a fresh decline. There was a sharp decline below $60,000 and the 100 hourly simple moving average. The bears gained strength for a move below the $58,000 support level. The price even broke below the $56,500 level. A bottom was formed near $55,858.
Initial Resistance 56. 500
Initial resistance on the upside is near the $56,500 level. The first major resistance is near the $57,000 level. That’s 23% of the drop from $60,964 to $55,858. Close to 6 Fib retracement level. There is also a key bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair. The main resistance is currently forming near the $58,000 and $58,500 levels. This is close to the 50% Fib retracement level of the recent drop from the $60,964 low to $55.858 low.
58. Over 500 Closing is Important
A close above the $58,500 level could indicate a steady recovery. The next major resistance is near the $59,800 and $60,000 levels. Any further gains could open the doors for a move towards the $61,200 level.
Will Bitcoin Drop More?
According to Jindal, if Bitcoin fails to recover above the $58,000 resistance zone, it could continue its decline. An immediate support on the downside is near the $55,500 level. The first major support is currently forming near the $55.200 level. The next major support is near the $55,000 level, below which the bears could aim more declines. In the stated case, the price could slide towards the $53,500 support zone in the near term.
What Do Technical Indicators Say?
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
Major Support Levels – $55,500 followed by $55,000
Major Resistance Levels – $56,500, $57,000, and $58,500