Bitcoin Price Turns Red: Risk of More Losses as $55K Test Looms

As a seasoned financial analyst with extensive experience in the cryptocurrency market, I’ve closely monitored Bitcoin’s recent price action. The failure of Bitcoin to recover above the $61,500 resistance zone is a concerning sign, especially after such a significant rally.

As a crypto investor, I’ve observed that Bitcoin‘s price attempt to rebound fell short at the $61,500 barrier. Consequently, BTC initiated another downward trend, potentially heading towards a dip around $55,000.

    Bitcoin started a fresh decline and traded below the $58,500 zone.
    The price is trading below $60,000 and the 100 hourly Simple moving average.
    There is a key bearish trend line forming with resistance at $58,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair might struggle to start a fresh increase above the $60,000 resistance zone.

Bitcoin Price Extends Losses

As a researcher studying the Bitcoin market, I’ve observed that the price failed to gain momentum above the $61,500 resistance level, despite efforts to recover. The bears continued their dominance and drove BTC downwards, breaking the support at $60,000. The decline gained significant momentum as the price plummeted below the $58,500 mark.

The cost dipped under the $57,000 mark, reaching a low at $56,650. Currently, the price is regrouping after this decline. It appears that the bulls are finding it challenging to initiate a rebound from the $56,650 point since the price now lies significantly below the 23.6% Fibonacci retracement level of the descent from the peak at $63,800 down to $56,650.

I’ve noticed that Bitcoin’s price has dipped below the $60,000 mark and the 100-hour Simple Moving Average (SMA). Additionally, a significant bearish trend line is emerging on the hourly chart of BTC/USD pair, offering resistance at $58,350.

Should a significant price hike occur, the cost may encounter opposition around the $57,500 mark. The initial barrier to further advancement lies at approximately $58,350 and the trendline. A decisive breakthrough above the trendline could potentially propel the price towards the $60,000 threshold.

Bitcoin Price Turns Red: Risk of More Losses as $55K Test Looms

As a crypto investor, I believe the next significant resistance level lies around $60,200, which is also the 50% Fibonacci retracement level of the recent downward correction from the peak of $63,800 to the low of $56,650. If the price manages to break above this resistance, it could potentially trigger a steady uptrend and push the price even higher. In such a scenario, we might see the price reaching towards the next resistance level around $61,500.

More Losses In BTC?

If Bitcoin doesn’t manage to surpass the $58,350 resistance point, there’s a chance it may keep declining instead. The nearest support for Bitcoin lies around the $56,650 mark.

Initially, the price finds significant resistance at the level of $56,200. Subsequently, a new support is emerging close to $55,800. Should further declines occur, the market may head towards the $55,000 price range as the next crucial support 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 – $56,650, followed by $55,000.

Major Resistance Levels – $58,350, and $60,000.

Read More

2024-07-05 06:05