Bitcoin (BTC) Price Analysis: Dropped Hard, What Are The Critical Levels?
Bitcoin price started a major downside correction and traded below $ 55,000 against the US Dollar. BTC is showing several bearish signals and could extend losses to $ 52,000. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Bitcoin started a huge decline and broke the $ 58,000 and $ 55,000 support levels.
- The price is currently trading well below $ 58,000 and the 100 hourly simple moving average.
- There was a break below a key bullish trend line with support near $ 58,100 on the hourly chart of the BTC / USD pair ( based on Kraken data).
- The pair is trading around $ 56,000.
Bitcoin Price Has Had A Hard Correction
After being rejected above the $ 60,000 level, Bitcoin launched a major downside correction. BTC broke many key supports close to $ 58,000 to move into a short-term bearish zone.
Also, there was a break below a key bullish trend line with support near $ 58,100 on the hourly chart of the BTC / USD pair. The pair accelerated its decline below the $ 55,500 and $ 55,000 support levels. Finally, it tested the $ 53,000 support zone and traded as low as $ 53,174.
The first major resistance occurs near the $ 57,000 level. The 50% Fib retracement level of the downtrend from $ 60,705 to $ 53,174 is also near $ 57,000. The main resistance is forming near the $ 58,000 level (the last breakout zone). A close above $ 58,000 is essential to return to the positive zone.
Will Bitcoin (BTC) Fall?
If Bitcoin fails to break above the $ 56,500 and $ 57,000 resistance levels, it could experience further dips. The first significant support on the downside is near the $ 53,200 level.
The next major support is near the $ 52,000 level. If the bulls fail to maintain the $ 52,000 support zone, the price could drop towards the $ 50,000 support level in the next few sessions.
- Hourly MACD – The MACD is currently gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is well below the 50 level.
- Major Support Levels – $ 53,200 followed by $ 52,000
- Major Resistance Levels – $ 55,000, 57,000 and $ 58,000