Bitcoin started a sharp decline yesterday and dropped below the $60,000 level. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could continue to lose towards $55,000:
- Bitcoin started a fresh decline below the $65,000 and $62,000 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 $61,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair could extend its losses below the $58,500 and $57,500 support levels in the near term.
Bitcoin Gains Bearish Momentum
Bitcoin had a clear break below the $62,000 support and the 100 hourly simple moving average with the sharp decline experienced yesterday. It even declined below the $60,000 support zone and formed a low near $58,630,. BTC is now consolidating losses.
An immediate upside resistance is near the $60,000 level. The first major resistance is near the $60.450 level. This is 23% of the drop from $66,350 to $58,630. Close to 6 Fib retracement level.
There is also a key bearish trend line forming with resistance near $61,000 on the hourly chart of the BTC/USD pair. A clear break above the $61,000 resistance would likely require opening the doors for a steady recovery. The next major resistance is near the $62,500 level.
62. The $500 Level Is Important
The 50% Fib retracement level of the drop from the $66.350 high to $58,630 low is also near the $62,500 level to act as a key hurdle. A move above the $62.500 level could start a fresh rally.
Will the Fall Deepen?
According to Jindal, if Bitcoin fails to break above the $61,000 resistance zone, it could continue its decline. An immediate support on the downside is near the $58,800 level. The first major support is currently formed near the $58.650 level. The next major support is near the $58,000 level, below which the bears may aim to retest the $55,000 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 below the 50 level.
- Main Support Levels – 58.500 then $58,000
- Main Resistance Levels – $60.450, $61.000 and $62.500
