Bitcoin price failed to clear the $60,650 resistance. BTC is now correcting gains and could decline towards the $57,500 support zone.
- Bitcoin is correcting gains and trading well below the $60,000 level.
- The price is trading below $58,800 and the 100 hourly simple moving average.
- There was a break below a bullish trend line with support at $60,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rise again if it sustains above the $57,500 support zone.
Bitcoin Price Begins Downward Correction
Bitcoin price started a decent rise after breaking the $58,500 resistance zone. BTC managed to climb above the $59,500 resistance. The pair even surpassed the $60,000 resistance zone.
However, bears seem to be active near the $60,650 resistance zone. A high was formed at $60,638 and the price is now correcting lower earnings. There was a drop below the $59,500 level. The price even fell below the 23.6% Fibonacci retracement level of the upward move from the $55,548 swing low to $60,638 high.
There was also a break below a rising trend line with support at $60,000 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $58,800 and the 100 hourly simple moving average.
On the upside, the price could face resistance near the $59,200 level. The first key resistance is near the $60,000 level. A clear move above the $60,000 resistance could start a steady increase in the coming sessions. The next key resistance could be $60,650. A close above the $60,650 resistance could provide more upside. In this case, the price could move higher and test the $62,000 resistance.
More downsides to BTC?
If Bitcoin fails to climb above the $59,200 resistance zone, it could continue to decline. Immediate support on the downside is near the $58,000 level or the 50% Fib retracement level of the upward move from the $55,548 swing low to $60,638 high.
The first major support is at $57,500. The next support is now near the $56,750 zone. Any more losses could send the price towards the $55,550 support 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 – $58,000, followed by $57,500.
Key Resistance Levels – $59,200 and $60,000.
