Bitcoin price failed to start a fresh increase above the $62,850 resistance zone. BTC started another decline and dropped 5% to test $58,000.
- Bitcoin started a fresh decline and traded below the $60,000 zone.
- The price is trading below $61,500 and the 100 hourly simple moving average.
- There is a bearish trend line forming with resistance at $60,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may struggle to initiate a fresh increase above the $60,850 resistance zone.
Bitcoin price drops 5%
Bitcoin price struggled to start a decent recovery wave above the Resistance level at $62,850. The bears took control and pushed BTC below the $61,200 support zone. There was a sharp decline below the $60,000 level.
The price declined by 5% and even climbed below the $58,000 level. A low was formed at $57,890 and the price is now consolidating losses. There was a minor spike above the $58,500 level and it is approaching the 23.6% Fib retracement level of the downward move from the $63,798 swing high to $57,890 low.
Bitcoin price is now trading below $61,500 and the 100-hour simple moving average. There is also a bearish trend line forming with resistance at $60,000 on the hourly chart of the BTC/USD pair.
If there is a decent upside, the price could face resistance near the $60,000 level and the trendline. The first key resistance is near the $60,850 level and the 50% Fib retracement level of the downward move from the $63,798 swing high to $57,890 low.
The next key resistance could be at $61,500. A clear move above the $61,500 resistance could start a steady increase and push the price higher. In this case, the price could move higher and test the $62,250 resistance. Any further gains could send BTC towards the $63,500 resistance in the near term.
More BTC losses?
If Bitcoin fails to climb above the $60,000 resistance zone, it could continue to decline. Immediate support on the downside is near the $58,250 level.
The first major support is at $58,000. The next support is now forming near $57,800. Any more losses could send the price towards the $56,500 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $58,250, followed by $58,000.
Key Resistance Levels – $59,250 and $60,000.