Bitcoin Price at Risk of Further Downside: Will Bears Tighten Grip?

As a seasoned researcher with a background in digital currencies spanning over five years, I have witnessed Bitcoin’s volatility firsthand. The recent decline in BTC price is reminiscent of the market’s rollercoaster ride we’ve come to know so well.


The price of Bitcoin has once again dipped after facing resistance at $60,650. If the current trend continues, there’s a chance Bitcoin could experience further drops, potentially falling below the support level of $57,500.

    Bitcoin is correcting gains and gaining bearish pace below the $59,000 level.
    The price is trading below $58,500 and the 100 hourly Simple moving average.
    There is a connecting bearish trend line forming with resistance at $58,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair could climb again if it stays above the $57,500 support zone.

Bitcoin Price Turns Red

The value of Bitcoin found it challenging to surpass the $60,000 barrier and instead began a downward trend. As a result, Bitcoin’s price dropped below the $60,000 and $59,500 thresholds, initiating a correction in its trajectory.

During the upward movement from the $55,550 low to the $60,638 high, there was a dip beneath the 50% Fibonacci retracement level. This decline allowed the bears to drive the price towards the $57,500 support area. Now, an emerging bearish trend line is linking up on the hourly chart of BTC/USD pair, with resistance at around $58,000.

Currently, Bitcoin’s price is dipping below $58,500 and approaching the 61.8% Fibonacci retracement point, which is a level of potential resistance derived from its upward surge from the $55,550 trough to the $60,638 peak. In simpler terms, Bitcoin’s price is falling towards a significant resistance point where it may face obstacles due to its previous strong upward movement.

Positively speaking, there could be potential hurdles for the price around $58,000 (both the level itself and the trend line). The first significant obstacle lies near $59,200, as well as the 100-hour Simple Moving Average. If we manage to surpass the $59,200 resistance, it may trigger a steady upward momentum in the forthcoming periods.

Bitcoin Price at Risk of Further Downside: Will Bears Tighten Grip?

If we surpass the potential barrier at $60,000, it could lead to further increases in price, potentially reaching as high as $60,650 for testing.

More Downsides In BTC?

If Bitcoin doesn’t manage to break through the $58,000 barrier, it might keep falling instead. The nearest support level if it does fall can be found around $57,500.

Initially, significant backing can be found at around $56,750. Currently, the nearby resistance is close to the $56,250 area. If prices continue to fall, they may head towards the $55,550 level of support in the short term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $57,500, followed by $56,750.

Major Resistance Levels – $58,000, and $59,200.

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2024-09-17 05:46