Bitcoin price extended its decline below the $55,500 support zone against the US Dollar. BTC is currently recovering, but it is likely to struggle near $55,500 and $56,450.
- Bitcoin failed to clear $58,000 and it started a fresh decline below $57,000.
- The price is now trading well below $56,450 and the 100 hourly simple moving average.
- There was a break below a key contracting triangle with support near $56,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue lower if it fails to recover above $55,500 and $56,450.
Bitcoin Price Extends Losses
There was no clear upside break in bitcoin above the $58,000 resistance zone. As a result, BTC broke the $56,450 support zone to move into a bearish zone (as discussed in yesterday’s analysis).
The bears took control and the price even failed to stay above the $55,500 support level. There was a break below a key contracting triangle with support near $56,800 on the hourly chart of the BTC/USD pair. There was also a spike below the $54,500 support and the price tested the $53,750 support.
Source:
The first major resistance is near the $55,500 level. The next major resistance is near the $56,000 level. It is close to the 50% Fib retracement level of the recent decline from the $58,400 high to $53,783 low.
