Bitcoin price is trading in a range below the USD 57,500 resistance against the US dollar. BTC is likely to start a major decline if there is a clear break below the USD 53,500 support zone.
- Bitcoin is struggling to gain momentum above the USD 56,000 and USD 56,500 levels.
- The price is now trading well below $ 56,500 and the 100 simple hourly moving average.
- A new downward channel is forming with resistance near USD 55,750 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair could correct higher, but the bulls are likely to struggle around USD 55,750 and USD 56,500.
Bitcoin price remains in jeopardy
Bitcoin rallied higher above the USD 56,000 level, but the bulls failed to gain strength. BTC nearly hit the USD 56,400 level and failed to release the simple 100-hour moving average.
A high was formed at $ 56,404 and the price continued to decline. It broke the USD 55,400 support and revisited the USD 53,500 support zone. A low is forming near USD 53,650 and the price is now consolidating losses. An immediate resistance is near the USD 55,050 level.
The 50% Fib retracement level of the recent drop from the high of $ 56,404 to the low of $ 53,670 is also near $ 55,050. The next key resistance is near the USD 55,400 level.
Source: BTCUSD on TradingView.com
Additionally, a new downward channel is forming with a resistance near USD 55,750 on the hourly chart of the BTC / USD pair. Channel resistance is close to the 76.4% Fib retracement level of the recent decline from the high of $ 56,404 to the low of $ 53,670.
Above the channel resistance, the main range resistance is near the USD 57,500 level. A successful break above channel resistance and then a follow-up move above USD 57,500 is a must to start another rally.
Downside in BTC?
If bitcoin fails to clear the USD 55,050 and USD 55,500 resistance levels, it could correct lower. An immediate support on the downside is near the USD 54,000 level.
The first major support is near the USD 53,500 level and the channel’s lower trendline. Further losses may call for a downward breach towards the USD 51,000 and USD 50,000 levels.
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now below the 50 level.
Key Support Levels – USD 54,000, followed by USD 53,500.
Key Resistance Levels – USD 55,050, USD 55,500 and USD 56,500.