TA: Bitcoin Continues To Struggle, Why BTC Could Dive Below $55K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is struggling to recover above $57,500 against the US Dollar. BTC is declining and could accelerate lower below $55,000 in the near term.

Bitcoin is facing resistance near the key $58,000 and $57,500 levels.
The price is now trading below $57,500 and the 100 hourly simple moving average.
There is a crucial bearish trend line forming with resistance near $57,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is under pressure and might slide further below $55,500 in the near term.

Bitcoin Price Faces Hurdles

Bitcoin price attempted another upside break above the $58,000 resistance zone. However, BTC failed to gain strength for a clear move above the $57,500 and $58,000 levels.

A high was formed near $57,850 and the price started a fresh decline. There was a break below the $57,500 and $57,200 levels. The bears pushed the price below the 50% Fib retracement level of the upward move from the $55,362 swing low to $57,850 high.

Bitcoin is now trading below $57,500 and the 100 hourly simple moving average. There is also a crucial bearish trend line forming with resistance near $57,300 on the hourly chart of the BTC/USD pair.

An immediate support is near the $56,300 level. It is close to the 61.8% Fib retracement level of the upward move from the $55,362 swing low to $57,850 high. The first major support is now forming near the $56,000 level. The main breakdown support is still near the $55,500 level.

Source: BTCUSD on TradingView.com

A downside break below the $55,500 level could spark more losses. In the stated case, the price might even decline below the $55,000 level. The next major support could be near the $53,200 level.

Upside Limited In BTC?

If bitcoin stays above the $55,500 support, it could attempt a fresh recovery wave. On the upside, an initial resistance is near the $57,000 level.

The first key resistance is near the $57,500 level and the trend line zone. The next major resistance sits near the $57,850 level and the 100 hourly simple moving average, above which the price might rise towards the $59,200 level.

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 below the 50 level.

Major Support Levels – $56,000, followed by $55,500.

Major Resistance Levels – $57,200, $57,500 and $58,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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