Bitcoin price extended its decline below the $ 54,000 level against the US dollar. BTC has the support of USD 52,500, but needs to release USD 54,000 for another increase.
- Bitcoin failed to stay above the USD 54,000 support and extended its decline.
- The price is now facing resistance near USD 54,000 and the 100 simple hourly moving average.
- A large downward channel is forming with resistance near USD 54,000 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair could either climb above USD 54,000 or it could extend its decline to USD 50,000.
Bitcoin price faces hurdles
Bitcoin struggled to stay above USD 55,000 and it started a fresh decline. BTC broke the USD 54,000 and USD 53,500 support levels.
There was also a close below the $ 54,000 level and the 100-hour simple moving average. The price tested the USD 52,500 support zone. A low is forming near USD 52,375 and the price is now consolidating losses. It recovered above the USD 53,200 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $ 56,545 swing high to the $ 52,375 low. It looks like the price is now facing resistance near USD 54,000 and the 100 simple hourly moving average.
Source: BTCUSD on TradingView.com
A major downward channel is also forming with resistance near USD 54,000 on the hourly chart of the BTC / USD pair. The next big resistance is near the USD 54,500 level. It is close to the 50% Fib retracement level of the downward move from the $ 56,545 swing high to $ 52,375 low.
A successful break above the channel resistance and then a break above the USD 54,500 level could set the pace for another rise towards the USD 56,500 level. The next big resistance above USD 56,500 could be USD 58,000.
More losses in BTC?
If bitcoin didn’t clear the USD 54,000 resistance and the 100-hour SMA, there is a risk of more downsides. An initial support on the downside is near the USD 52,500 level.
A good break and close below the USD 52,500 level will likely set the pace for another 5% decline. In the case mentioned, the price could decline towards the USD 50,000 support zone in the near term.
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is rising to the 50 level.
Key Support Levels – USD 52,500, followed by USD 50,000.
Major Resistance Levels – USD 54,000, USD 54,500 and USD 56,500.