Bitcoin price failed to beat the $ 59,500 resistance against the US dollar. BTC is now trading below $ 58,000 but is still above key supports like $ 56,500.
- Bitcoin failed to gain strength above the $ 59,200 and $ 59,500 resistance levels.
- The price is now trading below the $ 58,250 support and the 100-hour simple moving average.
- A large contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 57,400.
- The pair is likely to start a fresh move unless there is a close below $ 56,500.
Bitcoin price corrected lower
Bitcoin climbed above the $ 59,000 level but failed to gain strength above the $ 59,200 and $ 59,500 resistance levels. BTC traded as low as $ 59,475 and recently started a downward correction.
It was trading below the key support levels of $ 58,250 and $ 58,000. It was even below the $ 58,000 level and the 100 hour simple moving average. A low is being formed near $ 57,250 and the price is now consolidating losses near $ 57,500.
It appears that a large contraction triangle is forming on the hourly chart of the BTC / USD pair, which is near $ 57,400. Immediate resistance to the upside is near the $ 57,800 level. It is near the 23.6% fib retracement level of the recent decline from the $ 59,475 swing high to the $ 57,250 low.
Source: BTCUSD on TradingView.com
The first major resistance is near the $ 58,250 level and the 100-hour simple moving average. The 50% Fib retracement level of the recent decline from the $ 59,475 swing high to the $ 57,250 low is also near $ 58,360.
A sharp break above the $ 58,250 and $ 58,360 levels could open the doors for a steady rise. If so, the price is likely to move towards the USD 59,250 resistance.
Dips Limited in BTC?
If Bitcoin doesn’t go above $ 58,000 and $ 58,250, there could be other downsides. The first major support on the downside is near the $ 57,400 level and the lower trendline of the triangle.
A downside break below the triangle support could lead the price towards the main support level of $ 56,500. Further losses could put a lot of pressure on the bulls in the short term.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well below the 50 level.
Major support levels – $ 57,400 followed by $ 56,500.
Main Resistance Levels – $ 58,000, $ 58,250, and $ 59,200.