- Bitcoin price started a fresh decline from the $60,000 resistance against the US Dollar.
- The price is now trading below $60,000 and the 55 simple moving average (4-hours).
- There is a key bearish trend line with resistance near $58,500 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could accelerate lower if there is a break below the $55,500 support zone.
Bitcoin price is gaining pace below $58,500 against the US Dollar. BTC might decline heavily if there is a clear break below the $55,500 support zone.
Bitcoin Price Analysis
Bitcoin price failed to start a steady increase above the $60,000 resistance zone. As a result, there was a fresh bearish reaction and BTC declined below the $58,500 support zone.
The price traded below the $57,500 support level and the 55 simple moving average (4-hours). It even spiked below the $56,000 level and traded as low as $55,415. The price is now consolidating losses above the $55,500 level.
On the upside, an initial resistance is near the $55,750 level. It is near the 50% Fib retracement level of the downward move from the $60,070 swing high to $55,415 low.
The main resistance is forming near the $58,200 zone. There is also a key bearish trend line with resistance near $58,500 on the 4-hours chart of the BTC/USD pair. The trend line is near the 61.8% Fib retracement level of the downward move from the $60,070 swing high to $55,415 low.
A close above the $58,500 zone is needed for a fresh increase. In the stated case, the price is likely to rise steadily towards the $60,000 level.
An immediate support on the downside is near the $56,200 level. The next key support is near the $55,500 level. If the price fails to stay above $55,500, it could extend losses in the near term. The next major support sits near $53,200, below which there is a risk of a move towards the $52,000 level.
Looking at the chart, bitcoin price is clearly trading below $58,000 and the 55 simple moving average (4-hours). Overall, the price could accelerate lower if there is a break below the $55,500 support zone.
Technical indicators
4 hours MACD – The MACD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is well below the 50 level.
Key Support Levels – $55,500 and $52,000.
Key Resistance Levels – $57,500, $58,500 and $60,000.
