Bitcoin price extended its decline and tested the $ 55,500 support against the US dollar. BTC is now recovering but is likely to face strong resistance near the $ 57,500 level.
- Bitcoin failed to hold the $ 57,000 zone and extended its decline to $ 55,500.
- The price is now trading well below the $ 57,500 support and the 100-hour simple moving average.
- The hourly chart of the BTC / USD pair (data feed from Kraken) broke below a major contraction triangle with support near USD 57,450.
- The pair could correct higher but the bulls are likely to have strong selling interest near $ 57,500.
Bitcoin price continues to fall
Bitcoin struggled to resume its upward movement above the $ 58,000 zone resulting in a bearish move. BTC has broken the USD 57,500 and USD 56,200 support levels to move further into a bearish zone.
There was also a break below a major contraction triangle with support near USD 57,450 on the hourly chart for the BTC / USD pair. The pair was below the $ 56,000 level testing the next major support near the $ 55,500 zone.
A low is formed near $ 55,492 and the price consolidates losses. It is now trading above $ 56,000 and testing the 23.6% fib retracement level of the recent decline from the $ 59,475 swing high to the $ 55,492 low. On the upside, the first key resistance is near the USD 57,000 level.
Source: BTCUSD on TradingView.com
The main resistance is now forming near the $ 57,500 level (the most recent failure zone). The 50% fib retracement level of the recent decline from the $ 59,475 swing high to the $ 55,492 low is also close to the $ 57,500 level to act as a massive hurdle. A sharp break above the $ 57,500 level could open the doors for a steady rise.
More losses at BTC?
If Bitcoin doesn’t rise above $ 57,000 and $ 57,500, there could be other downsides. The first major support on the downside is near the USD 56,000 level.
The main support is now forming near the USD 55,500 level. A downtrend below the recent low and $ 55,500 could accelerate losses. The next target for the bears could be $ 53,200 or even $ 52,500 in the near future.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is still well below the 50 level.
Major Support Levels – $ 56,000, followed by $ 55,500.
Main Resistance Levels – $ 57,000, $ 57,500, and $ 58,000.