TA: Why Bitcoin Price At Risk of A Fresh Drop To $54.5K

Bitcoin

Bitcoin price failed to gain strength above the $60,000 resistance against the US Dollar. BTC is showing a few bearish signs and it could decline towards $54,500.

Bitcoin Price Turns Red

After another failure to clear the $60,000 resistance, bitcoin started a fresh decline. BTC broke the $58,000 support level to move into a bearish zone.

There was also a break below the $56,500 support level. The price is trading well below $58,000 and the 100 hourly simple moving average. It traded as low as $55,544 before it started an upside correction. There was a break above the $56,500 and $57,000 levels.

The price climbed above the 50% Fib retracement level of the downward move from the $59,901 high to $55,544 low. However, the price failed to clear the $58,000 resistance and the 100 hourly simple moving average.

Source: 
There is also a key bearish trend line forming with resistance near $57,500 on the hourly chart of the BTC/USD pair. The pair also failed to clear the 61.8% Fib retracement level of the downward move from the $59,901 high to $55,544 low. If it now showing bearish signs below the $57,800 and $58,000 levels. If there are more losses, the price could break the $55,544 low. The next major support for the bulls sits near $54,500.

Fresh Increase in BTC?

If bitcoin stays above the $55,544 low, it could start a fresh increase. An initial resistance on the upside is near the $57,800 level. The main resistance is near the $58,000 level. A clear break above the $58,000 level may possibly push the price towards the key $60,000 resistance zone. Any more gains could start a pump towards the $62,000 level. Technical indicators: Hourly MACD – The MACD is slowly moving in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level. Major Support Levels – $55,540, followed by $54,500. Major Resistance Levels – $57,800, $58,000 and $60,000.
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