Bitcoin Price Flashes Downside Break: Will Bears Take Over?

The cost of Bitcoin didn’t manage to surpass the $60,650 barrier. Currently, Bitcoin seems to be retreating and could potentially drop towards the $57,500 support level.

    Bitcoin is correcting gains and trading well below the $60,000 level.
    The price is trading below $58,800 and the 100 hourly Simple moving average.
    There was a break below a key bullish trend line with support at $60,000 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 Starts Downside Correction

Initially, the cost of Bitcoin rose significantly following its breakthrough of the $58,500 barrier, which acted as a resistance. Subsequently, BTC managed to surpass the $59,500 resistance level, and it even overcame the significant hurdle at $60,000.

Despite being close to the $60,650 resistance area, it appears that the bears are becoming active. A peak was reached at $60,638, and since then, there’s a correction in the gains. The price fell beneath the $59,500 mark and also dropped below the 23.6% Fibonacci retracement line of the upward trend that started from the $55,548 swing low to the $60,638 peak.

On the hourly chart for the BTC/USD pair, a drop occurred beneath a significant bullish trendline that offers support at $60,000. Currently, Bitcoin is trading under $58,800 and is now below the 100-hour Simple Moving Average.

Bitcoin Price Flashes Downside Break: Will Bears Take Over?

From a positive perspective, the price may encounter obstacles as it approaches around $59,200. The primary barrier is located near $60,000. If the price successfully breaks through this barrier at $60,000, it could initiate a steady upward trend in subsequent sessions. Another significant resistance might be found at $60,650. Overcoming this resistance at $60,650 might stimulate further increases, potentially leading the price to challenge the $62,000 resistance level.

More Downsides In BTC?

As a crypto investor, if Bitcoin doesn’t manage to break through the $59,200 resistance, it might continue heading south. The immediate support lies around the $58,000 mark or the 50% Fibonacci retracement level of the upward movement from the $55,548 low to the $60,638 high.

Initially, a significant level of support can be found at approximately $57,500. Currently, the next potential support area is close to the $56,750 range. If further losses occur, the price might trend towards the nearby support at around $55,550 in the near future.

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 – $58,000, followed by $57,500.

Major Resistance Levels – $59,200, and $60,000.

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2024-09-16 06:04