8 July 2024
Bitcoin price failed to start a recovery wave above the $58,500 resistance zone. BTC started another decline and might extend losses below $54,000.
Bitcoin started a fresh decline and traded below the $56,500 zone.
The price is trading below $56,500 and the 100 hourly Simple moving average.
There is a connecting bearish trend line forming with resistance at $56,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might struggle to start a fresh increase above the $58,000 resistance zone.
Bitcoin Price Turns Red
Bitcoin price started a recovery wave above the $57,000 level. BTC even climbed above the $58,000 level. However, the bears were active near the $58,500 resistance zone.
A high was formed at $58,396 and the price started a fresh decline. There was a drop below the $57,000 and $56,500 level. A low has formed near $54,301 and the price is now consolidating losses. There was a minor increase toward the 23.6% Fib retracement level of the downward move from the $58,396 swing high to the $54,301 low.
Bitcoin price is still trading below $56,500 and the 100 hourly Simple moving average. Immediate resistance on the upside is near the $56,000 level. The first key resistance is near the $56,400 level.
There is also a connecting bearish trend line forming with resistance at $56,350 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the downward move from the $58,396 swing high to the $54,301 low. A clear move above the trend line might send the price toward the $57,400 level. The next key resistance could be $58,400.
A close above the $58,40 resistance might start a steady increase and send the price higher. In the stated case, the price could rise and test the $60,000 resistance in the coming sessions.
More Losses In BTC?
If Bitcoin fails to climb above the $56,400 resistance zone, it could continue to move down. Immediate support on the downside is near the $54,400 level.
The first major support is $53,650. The next support is now forming near $53,200. Any more losses might send the price toward the $52,000 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 – $54,400, followed by $53,500.
Major Resistance Levels – $56,400, and $58,400.