Bitcoin has been struggling to break through the $61,500 resistance zone, which has resulted in a fresh decline in its price. BTC is currently retesting the $58,000 support level and may soon make another attempt to increase its value.
Looking at the technical indicators, Bitcoin is trading below $60,000 and the 100 hourly Simple Moving Average. There was a notable break below a key bullish trend line with support at $59,250 on the hourly chart of the BTC/USD pair, according to data feed from Kraken. Despite retesting the $58,000 support zone and forming a low at $58,061, the price is now consolidating its losses.
On the upside, Bitcoin faces resistance near the $58,800 level, followed by the 23.6% Fibonacci retracement level of the downward move from the $61,438 swing high to the $58,061 low. The first key resistance level is around $59,500 or the 50% Fibonacci retracement level. A clear move above $59,500 could indicate further upward movement, with the next major hurdle at $60,000 and a critical resistance at $61,500.
If Bitcoin fails to rise above the $58,800 resistance zone, it may continue to move downwards. Immediate support is found near $58,000, followed by the first major support level at $57,650. Further support is anticipated near the $56,500 zone, with potential for the price to reach the $55,500 support zone or even $55,000 in the near term.
The current state of Bitcoin price is facing challenges in breaking through key resistance levels and is at risk of further downward movement if it fails to overcome these obstacles. Traders and investors should closely monitor the support and resistance levels mentioned above to assess the future trajectory of Bitcoin price movements.
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