Bitcoin Price Rebounds, But Could the Downtrend Return?

Aayush Jindal

9 months ago

2 mins read

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Bitcoin price remained supported near the $52,500 zone. BTC is recovering losses and facing hurdles near the $55,200 and $55,500 levels.

Bitcoin is struggling to recover above the $55,500 zone.
The price is trading below $55,200 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance at $55,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could struggle to recover above the $55,500 or $56,000 resistance levels in the near term.

Bitcoin Price Aims Recovery

Bitcoin price remained in a bearish zone and extended losses below the $55,500 support zone. BTC even declined below the $53,200 level. It tested the $52,500 zone. A low was formed at $52,569 and the price is now attempting a recovery wave.

There was a move above the $53,200 and $54,000 resistance levels. It cleared the 23.6% Fib retracement level of the downward move from the $58,508 swing high to the $52,569 low. However, the price is now struggling to recover above the $55,500 zone.

Bitcoin is now trading below $55,200 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $55,200 level. There is also a key bearish trend line forming with resistance at $55,200 on the hourly chart of the BTC/USD pair.

The trend line is close to the 50% Fib retracement level of the downward move from the $58,508 swing high to the $52,569 low. The first key resistance is near the $55,500 level. A clear move above the $55,500 resistance might send the price further higher in the coming sessions.

Bitcoin Price — Source: BTCUSD on TradingView.com

The next key resistance could be $56,200. A close above the $56,200 resistance might spark more upsides. In the stated case, the price could rise and test the $57,500 resistance.

Another Decline In BTC?

If Bitcoin fails to rise above the $55,500 resistance zone, it could start another decline. Immediate support on the downside is near the $54,000 level.

The first major support is $53,200. The next support is now near the $52,500 zone. Any more losses might send the price toward the $51,800 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $54,000, followed by $53,200.

Major Resistance Levels – $55,200, and $55,500.

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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