More

    Bitcoin Holds Key Support, Here’s What Could Trigger A Sharp Decline

    Bitcoin price failed to clear the $58,500 resistance against the US Dollar. BTC is correcting lower and it could decline heavily if there is a break below $55,500

    Bitcoin struggled to clear the $58,500 resistance and started a fresh decline.
    The price is now trading below the $57,000 level and the 100 hourly simple moving average.
    There is a key rising channel forming with support near $56,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair could decline heavily if there is a close below $56,000 and $55,500.

    Bitcoin Price is Testing Key Support
    Bitcoin climbed again above the $58,000 level, but the bulls struggled to remain in action. BTC formed a short-term top near the $58,500 level and it recently started a downward move.
    There was a break below the $57,000 and $56,000 levels. The price even spiked below the $55,500 support level and a low is formed near $55,294. It is now trading below the $57,000 level and the 100 hourly simple moving average.
    Bitcoin is attempting a recovery above the $56,000 level. It broke the 23.6% Fib retracement level of the recent decline from the $58,418 high to $55,294 low. There is also a key rising channel forming with support near $56,000 on the hourly chart of the BTC/USD pair.

    Source: BTCUSD on TradingView.com
    It is now facing resistance near the $56,500 level and the 100 hourly simple moving average. The next resistance sits near the $56,800 level. It is close to the 50% Fib retracement level of the recent decline from the $58,418 high to $55,294 low.
    If there is an upside break above the $56,800 and $57,000 levels, the price could rise further. The next key resistance is near the $58,500 level.
    More Losses in BTC?
    If bitcoin fails to clear the $56,500 resistance or $56,800, it could continue to move down. An initial support on the downside is near the $56,000 level and the channel zone.
    The first key support is near the $55,250 level, below which the price might test $55,000. Any more losses could open the doors for a drop towards the $52,500 level in the near term.
    Technical indicators:
    Hourly MACD – The MACD is struggling to move into the bullish zone.
    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.
    Major Support Levels – $56,000, followed by $55,250.
    Major Resistance Levels – $56,800, $58,500 and $60,000.

    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) $ 41,363.00
    ethereum
    Ethereum (ETH) $ 2,456.12
    tether
    Tether (USDT) $ 1.00
    binance-coin
    Binance Coin (BNB) $ 331.94
    cardano
    Cardano (ADA) $ 1.30
    xrp
    XRP (XRP) $ 0.745529
    dogecoin
    Dogecoin (DOGE) $ 0.211547
    usd-coin
    USD Coin (USDC) $ 0.999437
    polkadot
    Polkadot (DOT) $ 16.44
    binance-usd
    Binance USD (BUSD) $ 1.00
    uniswap
    Uniswap (UNI) $ 21.26
    bitcoin-cash
    Bitcoin Cash (BCH) $ 540.49
    chainlink
    Chainlink (LINK) $ 21.68
    litecoin
    Litecoin (LTC) $ 143.29
    solana
    Solana (SOL) $ 34.44
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 41,381.00
    matic-network
    Polygon (MATIC) $ 1.05
    stellar
    Stellar (XLM) $ 0.287943
    ethereum-classic
    Ethereum Classic (ETC) $ 50.52
    theta-token
    Theta Network (THETA) $ 6.10
    internet-computer
    Internet Computer (ICP) $ 42.06
    vechain
    VeChain (VET) $ 0.087835
    dai
    Dai (DAI) $ 1.00
    compound-usd-coin
    cUSDC (CUSDC) $ 0.022080
    okb
    OKB (OKB) $ 18.51
    filecoin
    Filecoin (FIL) $ 51.63
    cdai
    cDAI (CDAI) $ 0.021544
    tron
    TRON (TRX) $ 0.063762
    terra-luna
    Terra (LUNA) $ 10.88
    monero
    Monero (XMR) $ 236.71
    aave
    Aave (AAVE) $ 317.88
    eos
    EOS (EOS) $ 4.05
    compound-ether
    cETH (CETH) $ 49.28
    ftx-token
    FTX Token (FTT) $ 34.66
    amp-token
    Amp (AMP) $ 0.074179
    cosmos
    Cosmos (ATOM) $ 12.72
    neo
    NEO (NEO) $ 46.26
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.127755
    pancakeswap-token
    PancakeSwap (CAKE) $ 15.79
    shiba-inu
    Shiba Inu (SHIB) $ 0.000006
    the-graph
    The Graph (GRT) $ 0.618929
    leo-token
    LEO Token (LEO) $ 3.04
    algorand
    Algorand (ALGO) $ 0.839571
    bitcoin-sv
    Bitcoin SV (BSV) $ 139.51
    celsius-degree-token
    Celsius Network (CEL) $ 6.17
    maker
    Maker (MKR) $ 2,889.69
    klay-token
    Klaytn (KLAY) $ 1.04
    tezos
    Tezos (XTZ) $ 3.02
    iota
    IOTA (MIOTA) $ 0.870328
    axie-infinity
    Axie Infinity (AXS) $ 43.35