Bitcoin Price Rebounds, But Could the Downtrend Return?

As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and trends. The current Bitcoin price action is a classic case of consolidation within a broader uptrend.


The price of Bitcoin has been holding steady around the $52,500 region. Currently, Bitcoin is regaining some of its lost value but encountering resistance at approximately $55,200 and $55,500.

    Bitcoin is struggling to recover above the $55,500 zone.
    The price is trading below $55,200 and the 100 hourly Simple moving average.
    There is a key bearish trend line forming with resistance at $55,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair could struggle to recover above the $55,500 or $56,000 resistance levels in the near term.

Bitcoin Price Aims Recovery

The value of Bitcoin continued to fall in a downward trend, breaking through the $55,500 support and even dipping below $53,200. It reached as low as $52,569 before starting to recover.

The price surpassed the barriers at $53,200 and $54,000, but it subsequently crossed over the 23.6% Fibonacci retracement level following a downward slide from the peak of $58,508 to the trough of $52,569. However, the current trend shows difficulty in bouncing back above the $55,500 range.

Currently, Bitcoin’s trading value has dropped below $55,200 and aligns with its 100-hour moving average. As it moves upward, there might be a barrier at the $55,200 mark where the price may encounter resistance. Additionally, a significant bearish trend line is emerging on the hourly BTC/USD chart, with potential resistance at $55,200.

The trend line is nearly touching the 50% Fibonacci retracement point during the descent from the peak of $58,508 to the low of $52,569. The initial resistance level lies around $55,500. If the price manages to surpass this resistance at $55,500, it could potentially rise even more in the upcoming trading periods.

In simpler terms, if we surpass $56,200 (current resistance), it may lead to further increases in price, potentially taking us up to the next resistance at $57,500 for testing.

Another Decline In BTC?

If Bitcoin doesn’t manage to break through the barrier at $55,500, there might be a renewed drop in its price. For now, a potential floor for any declines can be found around $54,000.

Initially, the significant resistance level stands at approximately $53,200. Currently, the nearby resistance is approaching the vicinity of $52,500. Should there be further declines, the price might head towards the next support around $51,800 in the near future.

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 – $54,000, followed by $53,200.

Major Resistance Levels – $55,200, and $55,500.

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2024-09-09 05:46