As an experienced financial analyst, I’ve been closely following the Bitcoin market for quite some time. Based on the current price action, it appears that Bitcoin is facing significant resistance near the $59,500 level, and a correction lower seems imminent.
The price of Bitcoin had a hard time surpassing the $59,500 mark. Currently, Bitcoin is trending downward and there’s a possibility it could drop further to around $56,000.
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Bitcoin started another decline from the $59,475 resistance zone.
The price is trading above $57,200 and the 100 hourly Simple moving average.
There was a break below a key bullish trend line with support at $57,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start another major decline if it fails to stay above the $57,200 support.
Bitcoin Price Faces Trouble
The price of Bitcoin bounced back, surpassing the $57,500 mark and reaching beyond $58,500. Yet, a group of sellers is lurking around the $59,500 threshold.
As a researcher studying the BTC/USD market, I’ve identified that a local peak was reached at $59,474, and currently, we’re experiencing a correction in price action. The market dipped below the significant support level of $58,500. Furthermore, the 50% Fibonacci retracement level at around $56,730 (calculated from the swing low at $54,955 to the high at $59,474) was put to the test during this downturn. Additionally, there was a decisive break beneath a crucial bullish trend line that previously offered support around $57,900 on the hourly chart.
Above the $57,200 mark, bitcoin’s bulls show signs of being in action. Currently, the price hovers above this figure and the 100-hour SMA. The next resistance lies at around $58,400.
As a crypto investor, I’ve identified some crucial levels of resistance for Bitcoin’s price movement. The initial resistance lies around $58,800. If we manage to break above this barrier, we can expect a potential increase in the upcoming trading sessions. The next resistance level is at $59,500. Overcoming this resistance might set off a steady climb towards $60,000. A successful close above the $60,000 mark could lead to further growth and potentially push the price up to test the $62,500 resistance.
More Losses In BTC?
Should Bitcoin be unable to surpass the $58,400 mark of resistance, there is a risk of another price drop. The nearest support can be found around the $57,200 region.
“The initial significant support lies at $56,000, which represents the 76.4% Fibonacci retracement level of the price rise from the previous low of $54,955 to the high of $59,474. Currently, the next support is around $55,000. If the price continues to decline, it could potentially drop towards the support area of $53,500 in the short term.”
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $57,200, followed by $56,000.
Major Resistance Levels – $58,400, and $59,500.
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2024-07-11 05:46