Bitcoin Dives Below $60K, Why Bulls Could Struggle In Short-Term

NewsBTC

Bitcoin price failed to stay above the $60,000 level against the US Dollar. BTC is consolidating losses and it remains at a risk of more downsides below $58,000.

  • Bitcoin extended its decline below $62,000 and $60,000 support levels.
  • The price is now trading below $60,000 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $60,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at a risk of more downsides below the $58,000 level in the near term.

Bitcoin Price Extends Losses

Bitcoin price failed to stay above the key $62,000 and $60,000 support levels. As a result, there was a crucial downside break below $60,000.

The price even settled below the $60,000 level and the 100 hourly simple moving average. A low is formed near $58,140 and the price is now consolidating losses. An immediate resistance on the upside is near the $59,500 level.

It is near the 23.6% Fib retracement level of the recent drop from the $63,700 swing high to $58,140 low. The first major resistance is near the $60,000 level. The main breakout zone is now forming near the $61,000 level and the 100 hourly SMA.

The 50% Fib retracement level of the recent drop from the $63,700 swing high to $58,140 low is also near $60,900. Besides, there is a key bearish trend line forming with resistance near $60,900 on the hourly chart of the BTC/USD.

Source: BTCUSD on TradingView.com

A clear break above the trend line resistance and then $61,000 may possibly call open the doors for a move towards the $62,000 level. The next major resistance sits near the $64,000 level.

More Losses In BTC?

If bitcoin fails to clear the $60,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $58,200 level.

The first major support is now forming near the $58,000 level. A break below the $58,000 support may possibly push the price towards the $57,200 support zone in the near term. The next key support is near the $56,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $58,200, followed by $58,000.

Major Resistance Levels – $59,500, $60,000 and $60,900.

via NewsBTC

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