Bitcoin price failed to offset the $ 58,500 resistance against the US dollar. BTC corrects lower and could drop sharply if there is a break below USD 55,500
- Bitcoin struggled to break the $ 58,500 resistance and started a new decline.
- The price is now trading below the $ 57,000 level and the 100 hour simple moving average.
- A major rising channel is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 56,000.
- The pair could fall sharply if there is a closing price below $ 56,000 and $ 55,500.
Bitcoin Price is testing key support
Bitcoin climbed above the $ 58,000 level again, but the bulls struggled to stay in action. BTC spiked near the USD 58,500 level for the short term and recently started a downward move.
There was a pause below the $ 57,000 and $ 56,000 levels. The price was even below the $ 55,500 support level and a low was formed near $ 55,294. It is now trading below the $ 57,000 level and the 100 hour simple moving average.
Bitcoin is trying to rebound above the $ 56,000 level. It broke the 23.6% fib retracement level of the recent decline from the high of $ 58,418 to the low of $ 55,294. A major rising channel is also forming on the hourly chart for the BTC / USD pair with support near USD 56,000.
Source: BTCUSD on TradingView.com
It is now facing resistance near the $ 56,500 level and the 100-hour simple moving average. The next resistance is near the $ 56,800 level. It is close to the 50% Fib retracement level of the recent decline from the high of $ 58,418 to the low of $ 55,294.
If there is an uptrend above the $ 56,800 and $ 57,000 levels, the price could continue to rise. The next major resistance is near the $ 58,500 level.
More losses at BTC?
If Bitcoin doesn’t remove the $ 56,500 or $ 56,800 resistance, it could go further down. Initial support on the downside is near the USD 56,000 level and the channel zone.
The first major support is near the $ 55,250 level below which the price could test $ 55,000. Further losses could open the doors for a decline to the $ 52,500 level in the short term.
Hourly MACD – The MACD is struggling to get into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now just below the 50 level.
Major support levels – $ 56,000 followed by $ 55,250.
Main Resistance Levels – $ 56,800, $ 58,500, and $ 60,000.