Bitcoin Dives, Breaks $60K: Market Reels From Sharp Decline

As an experienced analyst, I believe that the recent decline in Bitcoin’s price below $60,000 is a clear sign of a short-term downtrend. The repeated failure to hold above key resistance levels such as $62,550 and $63,500 suggests that bears are in control.

As a researcher studying the Bitcoin market, I’ve observed that the price has recently lost momentum and dipped below the $60,000 mark. This bearish trend suggests a short-term downturn for Bitcoin. Furthermore, there may be resistance near the $62,000 level that could pose challenges for any potential recovery.

    Bitcoin started a fresh decline from the $62,550 resistance level.
    The price is trading below $61,500 and the 100 hourly Simple moving average.
    There is a key bearish trend line forming with resistance at $62,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair could correct higher, but upsides might be limited above the $62,000 resistance zone.

Bitcoin Price Nosedives

As an analyst, I’ve observed that Bitcoin’s price attempt to surge above the $63,500 mark was unsuccessful. Instead, it faced resistance and started to slide downward. The price dipped significantly below both the $62,000 and $61,500 thresholds.

The cost dipped below the $60,000 mark and reached a low of $58,448, following which it started correcting its losses. There was a slight uptick in price above the $59,800 threshold. The price surpassed the 23.6% Fibonacci retracement level, which is derived from the downward trend that began at the $64,460 peak and ended at the $58,448 trough.

As an analyst, I’ve observed that Bitcoin’s current price hovers around $60,000, falling below both the Bitcoin price and the 100-hour Simple Moving Average (SMA). Should a rebound occur, the resistance level near $61,500 may hinder further growth.

“The first significant barrier for Bitcoin’s price might be around $62,150 or the 50% mark of its recent downtrend from hitting $64,460 high to $58,448 low. Another potential resistance level is at $62,500. Additionally, a bearish trendline has emerged on the hourly chart for BTC/USD pair, with resistance set at approximately $62,400.”

Bitcoin Dives, Breaks $60K: Market Reels From Sharp Decline

If the price of Bitcoin manages to break through the $62,500 resistance level, it could lead to a steady upward trend and potential increase in price. In such a scenario, the price may hit the next resistance at $63,500 before continuing its climb towards $65,000 in the short term.

Another Drop In BTC?

Should Bitcoin be unable to surpass the $62,500 mark as resistance, it may instead head in a descending direction. The nearest support lies around the $61,200 region.

Initially, the significant resistance lies at $60,000. Currently, a new potential support is emerging around $58,500. Should further declines occur, the price may head towards the nearby support region of $57,000 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 – $61,200, followed by $60,000.

Major Resistance Levels – $62,150, and $62,500.

Read More

2024-06-25 06:42