Bitcoin price failed to initiate a recovery wave above the $61,500 resistance zone. BTC has started another decline and could plunge towards $55,000.
- Bitcoin started a fresh decline and traded below the $58,500 zone.
- The price is trading below $60,000 and the 100 hourly simple moving average.
- There is a bearish trend line forming with resistance at $58,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may struggle to initiate a fresh increase above the $60,000 resistance zone.
Bitcoin price extends losses
Bitcoin price struggled to start a decent recovery wave above the $61,500 resistance level. The bears remained in action and pushed BTC below the $60,000 support zone. There was a sharp decline below the $58,500 level.
The price even dipped below the $57,000 level. A low was formed at $56,650 and the price is now consolidating losses. It seems like the bulls are struggling to initiate a recovery wave from the $56,650 level as the price is now well below the 23.6% Fib retracement level of the downward move from the $63,800 high to $56,650 low.
Bitcoin price is now trading below $60,000 and the 100-hour simple moving average. There is also a bearish trend line forming with resistance at $58,350 on the hourly chart of the BTC/USD pair.
If there is a decent upside, the price could face resistance near the $57,500 level. The first key resistance is near the $58,350 level and the trendline. A clear move above the trendline could send the price towards the $60,000 level.
![Bitcoin Price Turns Red: Risk of Further Losses as $55K Test Nears 1 Bitcoin Price](https://thegurumedia.com/wp-content/uploads/2024/07/Bitcoin_d967f1.png)
The next key resistance could be $60,200 and the 50% Fib retracement level of the downward move from the $63,800 swing high to $56,650 low. A clear move above the $60,200 resistance could start a steady increase and push the price higher. In this case, the price could rise and test the $61,500 resistance.
More BTC losses?
If Bitcoin fails to climb above the $58,350 resistance zone, it could continue to decline. The immediate support on the downside is near the $56,650 level.
The first major support is at $56,200. The next support is now forming near $55,800. Any more losses could send the price towards the $55,000 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 – $56,650, followed by $55,000.
Key Resistance Levels – $58,350 and $60,000.