TA: Bitcoin Dives Below Key Support, Here’s Why BTC Bears Are Back

NewsBTC

Bitcoin price failed to stay above the $54,000 support against the US Dollar. BTC is declining and it is likely to accelerate losses below the $50,000 support zone.

  • Bitcoin is declining from well above $55,000 and it broke the $53,500 support.
  • The price is now trading well below $52,000 and the 100 hourly simple moving average.
  • There was a break below a major declining channel with support near $52,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue lower below the $50,500 and $50,000 support levels.

Bitcoin Price is Down 7%

Bitcoin attempted an upside break above the $55,500 level, but it failed. BTC traded as high as $55,493 and recently started a strong decline.

There was a break below the $54,000 and $53,500 support levels. There was also a break below a major declining channel with support near $52,800 on the hourly chart of the BTC/USD pair. The pair is now trading well below $52,000 and the 100 hourly simple moving average.

It even broke $51,000 and traded as low as $50,512. On the upside, an initial resistance is near the $51,680 level. It is near the 23.6% Fib retracement level of the recent drop from the $55,493 high to $50,512 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

The first major resistance is near the $52,500 level. The main resistance is now forming near the $53,000 zone. The 50% Fib retracement level of the recent drop from the $55,493 high to $50,512 low is also near the $53,000 zone. A successful break above the $52,500 and $53,000 levels is must to start a fresh increase in the near term.

More Losses in BTC?

If bitcoin fails to clear the $52,500 and $53,000 resistance levels, it could continue to move down. An immediate support on the downside is near the $50,500 level.

The first key support is near the $50,000 level. If the bears are able to clear the $50,000 support, the price could dive further. The next major support is near the $49,200 level, below which the price could test the $48,000 zone.

Technical indicators:

Hourly MACD – The MACD is slowly gaining strength in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 30 level.

Major Support Levels – $50,000, followed by $48,000.

Major Resistance Levels – $51,500, $52,500 and $53,000.

via NewsBTC

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