Bitcoin fell about 4% yesterday, causing significant double-digit losses for altcoins. Down to around $58.140, Bitcoin is currently consolidating losses and is at risk of falling below $58,000, according to technical analysis by NewsBTC’s Aayush Jindal:
- Bitcoin extended its decline below the $62,000 and $60,000 support levels.
- Price is currently trading below $60,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $60,900 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair is at risk of further declines below the $58,000 level in the near term.
Bitcoin Increases Losses
Bitcoin had a low yesterday. It failed to stay above the key $62,000 and $60,000 support levels and there was a key downside break below $60,000. The price formed a bottom near $58.140 and is now consolidating losses. An immediate resistance on the upside is near the $59,500 level. That’s 23% of the drop from $63,700 to $58,140. Close to 6 Fib retracement level. The first major resistance is near the $60,000 level. The main breakout zone is now forming near the $61,000 level and the 100 hourly SMA. The 50% Fib retracement level of the recent decline from the $63,700 high to $58.140 low is also near the $60,900 level. Besides, there is a key bearish trend line forming with resistance near $60,900 on the hourly chart of BTC/USD.
A clear break above the trendline resistance followed by $61,000 could open the doors for a move towards the $62,000 level, possibly. The next major resistance is sitting near the $64,000 level.
Will Bitcoin Drop More?
According to Jindal, if Bitcoin fails to break past the $60,000 resistance zone, it could continue to move lower. An immediate support on the downside is near the $58,200 level. The first major support is currently formed near the $58,000 level. A break below the $58,000 support could push the price towards the $57,200 support zone in the near term. The next key support is near the $56,500 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
- Main Support Levels – 58.200 then $58,000
- Main Resistance Levels – $59,500, 60,000 and $60,900