Key Takeaways:
- Bitcoin extended losses and almost tested the $52,600 support.
- BTC/USD is now trading below a key bearish trend line with resistance at $60,000 on the daily chart.
- The price could correct losses, but the bears might defend the $60,000 hurdle.
NEW DELHI (CoinChapter.com) — Bitcoin price settled below the $60,000 pivot level. BTC is consolidating losses and might attempt to clear the $60,000 resistance in the coming days.
Bitcoin Price Faces Uphill Task Near $60K
In the previous analysis, we discussed how Bitcoin price was at risk of more losses below the $60,000 and $58,500 support levels. BTC remained in a bearish zone and settled below the $60,000 support. It sparked more losses below $58,500.
The price even dived below the $56,500 support and almost tested the $52,600 support. A low was formed at $53,219, and the price settled well below the 50-day simple moving average (blue). The price is now consolidating losses and recently recovered above the $56,500 level.
Bitcoin price tested the $58,000 resistance zone and the 23.6% Fib retracement level of the downward move from the $71,950 swing high to the $53,219 low. The current price action and technical structure suggest that there could be a recovery wave above the $58,000 level.
However, many hurdles await near the $60,000 zone. On the daily chart, a key bearish trend line with resistance at $60,000 also exists. To start a recovery wave and a decent increase, the price must settle above the $60,000 resistance zone.
The first major resistance above $60,000 sits near the $62,500 zone. If BTC price breaks the $62,500 resistance, it could initiate a steady increase.
The next key resistance sits at $65,000 and the 50-day simple moving average (blue), above which the price could gain bullish momentum. In the stated case, the bulls could even aim for a move toward the $67,500 region. Any more gains might send the price toward the $70,000 resistance.
Another Dive In BTC?
Conversely, Bitcoin’s price might struggle near $58,000 or $60,000 and start another decline. Immediate support on the downside is near the $55,000 level, and the first major support is near the $52,600 level.
A downside break below the $52,600 support zone could spark more bearish moves. In the stated case, the price might decline toward the $50,000 support. Any more losses could open the doors for a move toward the $47,000 support zone in the coming days.
Overall, Bitcoin is trading in a short-term bearish zone below $60,000 and the 50-day SMA. BTC could see another decline unless there is a daily close above $60,000.
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