Bitcoin (BTC) Price Takes a 5% Hit: Can Bulls Save The Week?

• Bitcoin (BTC) price started another decline and tumbled 5% to test $58,000. Bitcoin price failed to start a fresh increase above the $62,850 resistance zone. 
• There is a connecting bearish trend line forming with resistance at $60,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might struggle to start a fresh increase above the $60,850 resistance zone.

Bitcoin Price Dives 5%

Bitcoin price struggled to start a decent recovery wave above the $62,850 resistance level. The bears took control and pushed BTC below the $61,200 support zone. There was a sharp decline below the $60,000 level.

The price declined 5% and even spiked below the $58,000 level. A low was formed at $57,890 and the price is now consolidating losses. 

There was a minor increase above the $58,500 level and approaching the 23.6% Fib retracement level of the downward move from the $63,798 swing high to the $57,890 low.

Bitcoin price is now trading below $61,500 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance at $60,000 on the hourly chart of the BTC/USD pair.

If there is a decent increase, the price could face resistance near the $60,000 level and the trend line. The first key resistance is near the $60,850 level and the 50% Fib retracement level of the downward move from the $63,798 swing high to the $57,890 low.

The next key resistance could be $61,500. A clear move above the $61,500 resistance might start a steady increase and send the price higher. 

 

In the stated case, the price could rise and test the $62,250 resistance. Any more gains might send BTC toward the $63,500 resistance in the near term.

More Losses In BTC?

If Bitcoin fails to climb above the $60,000 resistance zone, it could continue to move down. Immediate support on the downside is near the $58,250 level.

The first major support is $58,000. The next support is now forming near $57,800. Any more losses might send the price toward the $56,500 support zone in the near 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 – $58,250, followed by $58,000.
• Major Resistance Levels – $59,250, and $60,000.