As a seasoned researcher with years of experience in analyzing cryptocurrency markets, I can confidently say that the recent downside correction in Bitcoin is no laughing matter. The price has been struggling to recover after failing to maintain its position above the $62,500 resistance. This downward move saw Bitcoin dip below crucial supports like $61,500 and $60,000, and even breach a significant bullish trend line.
Bitcoin‘s price experienced a decline after hitting a resistance at around $62,700. At the moment, it’s holding steady near $58,500 but finding it tough to bounce back.
- Bitcoin started a decent downward move below the $61,500 and $60,000 levels.
The price is trading below $60,000 and the 100 hourly Simple moving average.
There was a break below a key bullish trend line with support at $61,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might decline further if it trades below the $58,500 support zone.
Bitcoin Price Holds Support
After failing to maintain its position above $62,500, the price of Bitcoin began a drop. This decline took it below the levels of $61,500 and $60,000, causing a temporary shift in the market towards bearish sentiments.
On the Bitcoin-to-US-Dollar (BTC/USD) chart, there was a drop beneath a significant bullish trend line that offered support at $61,000 on an hourly basis. The pair fell below the halfway mark of the Fibonacci retracement level, which is calculated from the price movement ranging from the $54,556 swing low to the $62,700 peak.
Currently, Bitcoin’s trading value hovers below the $60,000 mark and is aligned with its 100-hour Simple Moving Average. Bullish investors are maintaining a defensive stance around the $58,500 support level. The price has found stability above the 61.8% Fibonacci retracement level of the uptrend that started from $54,556 low to $62,700 high.
On a positive note, there may be obstacles for the price increase around the $59,500 mark. Initially, a significant barrier lies near the $60,000 level. If the price manages to surpass this initial resistance, it could potentially push higher towards future sessions, with potential resistances at $61,200.
Overcoming the upcoming obstacle requires surpassing $62,500. Breaking through this level may encourage a surge in prices, potentially pushing them towards testing the resistance at $65,000.
More Downsides In BTC?
If Bitcoin doesn’t manage to break through the $60,000 barrier, it might keep falling instead. The lowest point it could potentially reach is around $58,500, acting as a buffer for further drops.
Initially, a significant level of backing can be found at $57,650. At this moment, the next potential support is approaching the vicinity of $57,250. If there are further drops, the price could move towards the $55,500 or even $55,000 support areas 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 – $58,500, followed by $57,250.
Major Resistance Levels – $59,500, and $60,000.
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2024-08-12 06:58