Bitcoin is facing significant resistance, although it managed to close the monthly positive. According to technical analysis by NewsBTC’s Aayush Jindal, Bitcoin could drop drastically if it breaks the $60,000 support zone in the short term:
- Bitcoin failed to surpass $62.500 and started a fresh decline.
- Price is currently trading below $62,000 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support near $61,500 on the hourly chart of the BTC/USD pair (data from Kraken).
- 60. The pair could decline further if there is a clear break below $000.
Bitcoin Faces Resistance
Bitcoin started a decline from the local top at $62,950 and broke out clearly below the $61,200 and $61,000 support levels. There was a break below a key bullish trend line with support near $61,500 on the hourly chart of the BTC/USD pair. It is now trading below $62,000 and the 100 hourly simple moving average. The pair even settled below the 50% Fib retracement level of the upward move from the $58.140 low to $62.950 high. An immediate resistance on the upside is near the $61,000 level.
The first major resistance is near the $61.200 level and the 100 hourly SMA. A clear break above the $61.200 resistance would likely call to open the doors for a move towards the $62,000 level. The next major resistance is near the $62,500 level. A close above $62.500 could start a steady rise.
Will Bitcoin Drop?
According to Jindal, if Bitcoin fails to break through the $62,000 resistance zone, it could continue its decline. An immediate support on the downside is near the $60.200 level. The first major support is currently forming near the $60,000 level. This is 61% of the upward move from $58,140 to $62,950. Close to 8 Fib retracement level. A break below the $60,000 support could lead to a sharp decline. The next key support is near the $58,500 level. Any further losses may require a move towards the $55,000 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
- Main Support Levels – 60.200 then $60,000
- Main Resistance Levels – $61.200, $62.000 and $62.500
