Bitcoin Price Drifts Lower: Will the Grind Continue?

As a seasoned researcher with over a decade of experience in the crypto market, I’ve seen Bitcoin’s price fluctuations more times than I can count. Currently, it appears that BTC is showing signs of weakness and could potentially slide further toward the $55,000 support zone if it fails to hold above the immediate support at $57,200.


The price of Bitcoin has been sliding beneath the $58,500 barrier, a potential support level. At present, Bitcoin seems to be finding it hard to hold its ground and might further drop towards the $55,000 support level.

    Bitcoin is gaining pace below the $60,000 support zone.
    The price is trading below $59,000 and the 100 hourly Simple moving average.
    There is a connecting bearish trend line forming with resistance at $58,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair might extend losses if it fails to stay above the $57,200 support.

Bitcoin Price Extends Losses

Initially, the price of Bitcoin dipped again and fell beneath the $60,000 resistance point. The bearish forces managed to drive the price down further, breaking through the $58,500 support level. At one point, Bitcoin’s value even dropped below $57,200.

At $57,124, a trough developed and the price is currently holding steady amid losses. After a small upward surge, the value still stays significantly beneath the 23.6% Fibonacci retracement line of the recent slide from the peak at $60,954 to the bottom at $57,124.

As a researcher observing the cryptocurrency market, I note that Bitcoin’s current trading price has dipped below the $60,000 mark and is aligning with the 100-hour Simple Moving Average. Additionally, a bearish trend line seems to be forming, connecting key points on the hourly chart of BTC/USD pair, with a notable resistance at approximately $58,400.

On the upside, the price could face resistance near the $58,000 level. The first key resistance is near the $58,400 level and the trend line. A clear move above the $58,400 resistance might send the price further higher in the coming sessions.

Bitcoin Price Drifts Lower: Will the Grind Continue?

The next key resistance could be $59,040 or the 50% Fib retracement level of the recent decline from the $60,954 swing high to the $57,124 low. A close above the $59,040 resistance might spark more upsides. In the stated case, the price could rise and test the $60,000 resistance.

More Downsides In BTC?

If Bitcoin doesn’t manage to break through the $58,400 barrier, there’s a possibility it might initiate a new drop. The lowest point it might stabilize at in this scenario could be around $57,200.

Initially, a significant level of backing can be found at approximately $56,500. Currently, an additional layer of support is approaching the vicinity of $56,200. Should further declines occur, it’s possible that the price might trend towards the next line of defense at around $55,000 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 – $57,200, followed by $56,500.

Major Resistance Levels – $58,000, and $58,400.

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2024-09-02 06:22