Bitcoin faced a major setback as it failed to clear the $61,500 resistance zone, leading to a sharp decline. The cryptocurrency is now retesting the $58,000 support level, with the possibility of a potential recovery in the near future.
The price of Bitcoin plummeted below $60,000 and the 100 hourly Simple Moving Average, signaling a bearish trend in the market. A crucial bullish trend line at $59,250 was also breached, adding to the selling pressure on BTC.
Despite the current consolidation phase around the $58,000 support zone, Bitcoin may attempt a fresh increase if it manages to hold above this level. The immediate resistance lies near the $58,800 mark, followed by the $59,500 level.
In the event of a successful break above $59,500, Bitcoin could face challenges around the $60,000 mark once again. The major hurdle remains at $61,500, which if surpassed, could trigger a bullish momentum in the market.
However, if Bitcoin fails to overcome the $58,800 resistance zone, there is a risk of further downside pressure. The immediate support on the downside is at $58,000, followed by a major support level at $57,650. Additional losses could push the price towards $56,500 or even $55,500 in the short term.
The Hourly MACD has entered the bearish zone, indicating a negative outlook for Bitcoin in the short term. The Hourly RSI is also below the 50 level, further confirming the current downtrend in the market.
The recent price action of Bitcoin suggests a struggle to break above key resistance levels, with the possibility of further downside if support levels are breached. Traders and investors should closely monitor the $58,000 support level and the $59,500 resistance level for potential trading opportunities in the coming days.
