More

    Bitcoin Drops To $54K, Why Recovery Could Be Limited In Short-Term

    Bitcoin price extended its decline below the $55,500 support zone against the US Dollar. BTC is currently recovering, but it is likely to struggle near $55,500 and $56,450.
    Bitcoin failed to clear $58,000 and it started a fresh decline below $57,000.
    The price is now trading well below $56,450 and the 100 hourly simple moving average.
    There was a break below a key contracting triangle with support near $56,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair is likely to continue lower if it fails to recover above $55,500 and $56,450.
    Bitcoin Price Extends Losses
    There was no clear upside break in bitcoin above the $58,000 resistance zone. As a result, BTC broke the $56,450 support zone to move into a bearish zone (as discussed in yesterday’s analysis).
    The bears took control and the price even failed to stay above the $55,500 support level. There was a break below a key contracting triangle with support near $56,800 on the hourly chart of the BTC/USD pair. There was also a spike below the $54,500 support and the price tested the $53,750 support.
    A low is formed near $53,786, and the price is now trading well below $56,450 and the 100 hourly simple moving average. Bitcoin is currently recovering and trading above $54,500. It cleared the 23.6% Fib retracement level of the recent decline from the $58,400 high to $53,783 low.

    Source: BTCUSD on TradingView.com
    The first major resistance is near the $55,500 level. The next major resistance is near the $56,000 level. It is close to the 50% Fib retracement level of the recent decline from the $58,400 high to $53,783 low.
    The main resistance is now forming near the $56,450 level, above which the price might revisit the key $58,000 breakout resistance zone.
    More Losses in BTC?
    If bitcoin fails to correct higher above $55,500 and $56,000, there are chances of more downsides in the near term. An initial support is near the $54,000 level.
    The key support is now near the $53,750 level, below which the bears might aim a test of the $50,000 support zone in the near term.
    Technical indicators:
    Hourly MACD – The MACD is losing pace in the bearish zone.
    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
    Major Support Levels – $54,000, followed by $53,750.
    Major Resistance Levels – $55,550, $56,000 and $56,450.

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 64,043.00
    ethereum
    Ethereum (ETH) $ 2,374.43
    binance-coin
    Binance Coin (BNB) $ 565.60
    xrp
    XRP (XRP) $ 1.78
    tether
    Tether (USDT) $ 1.00
    cardano
    Cardano (ADA) $ 1.43
    polkadot
    Polkadot (DOT) $ 41.87
    uniswap
    Uniswap (UNI) $ 34.62
    litecoin
    Litecoin (LTC) $ 266.62
    dogecoin
    Dogecoin (DOGE) $ 0.132301
    chainlink
    Chainlink (LINK) $ 36.68
    bitcoin-cash
    Bitcoin Cash (BCH) $ 788.33
    stellar
    Stellar (XLM) $ 0.623769
    theta-token
    Theta Network (THETA) $ 12.13
    filecoin
    Filecoin (FIL) $ 170.80
    usd-coin
    USD Coin (USDC) $ 0.999600
    vechain
    VeChain (VET) $ 0.164947
    tron
    TRON (TRX) $ 0.139349
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 64,084.00
    eos
    EOS (EOS) $ 7.44
    klay-token
    Klaytn (KLAY) $ 2.69
    solana
    Solana (SOL) $ 25.96
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.248451
    terra-luna
    Terra (LUNA) $ 15.83
    compound-ether
    cETH (CETH) $ 47.51
    iota
    IOTA (MIOTA) $ 2.07
    cosmos
    Cosmos (ATOM) $ 24.01
    monero
    Monero (XMR) $ 321.77
    okb
    OKB (OKB) $ 21.04
    bitcoin-sv
    Bitcoin SV (BSV) $ 293.51
    binance-usd
    Binance USD (BUSD) $ 0.997782
    bittorrent-2
    BitTorrent (BTT) $ 0.008072
    aave
    Aave (AAVE) $ 405.01
    ftx-token
    FTX Token (FTT) $ 56.63
    tezos
    Tezos (XTZ) $ 6.44
    neo
    NEO (NEO) $ 66.50
    avalanche-2
    Avalanche (AVAX) $ 35.67
    kusama
    Kusama (KSM) $ 461.55
    compound-usd-coin
    cUSDC (CUSDC) $ 0.021888
    elrond-erd-2
    Elrond (EGLD) $ 231.12
    algorand
    Algorand (ALGO) $ 1.47
    nem
    NEM (XEM) $ 0.417731
    huobi-token
    Huobi Token (HT) $ 20.80
    pancakeswap-token
    PancakeSwap (CAKE) $ 23.57
    thorchain
    THORChain (RUNE) $ 15.17
    cdai
    cDAI (CDAI) $ 0.021366
    holotoken
    Holo (HOT) $ 0.018200
    dai
    Dai (DAI) $ 0.999437
    hedera-hashgraph
    Hedera Hashgraph (HBAR) $ 0.380488
    dash
    Dash (DASH) $ 299.02