Bitcoin struggled to recover above $60,000 but failed and started a fresh decline. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could drop as low as $55,000.
Bitcoin Turns Red
Bitcoin’s attempt to recover failed. It broke above the $60,000 region but failed to gain any real bullish momentum. Thus, it started a fresh decline below the $59.200 level. It traded below the $58.500 support area and the 100 hourly simple moving average. There was also a break below a key bullish trend line with support near $59.200 on the hourly chart of the BTC/USD pair. Bitcoin traded below the 50% Fib retracement level of the bullish wave from the $55,674 high to $60,050 high.
An immediate support is near the $57,350 level. This is 61% of the upside wave from $55,674 to $60,050. Close to 8 Fib retracement level. The first major support is currently formed near the $56,500 level. A downside break below the $56.500 level could lead to more losses. The main support is near the $55,000 and $55,000 levels. Any further losses could set the pace for a move towards the $52,000 support zone in the near term.
Will Bitcoin Rise?
According to Jindal, if Bitcoin stays above the $56,500 support, it could start a fresh increase. At this point, an initial resistance on the upside is near the $58,000 level. The first key resistance is near the $58,500 level and the 100 hourly simple moving average. The next major resistance is near the $59,200 level, above which the price could rise towards the $60,000 level. Any further gains could lead the price towards the $61,200 level.
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 below the 50 level.
- Main Support Levels – 56.500 then $55.500
- Main Resistance Levels – $58,500, 59,200 and $60,000