Bitcoin price has dropped below the $60,000 mark and is currently consolidating around $58,000. This decline has raised concerns among investors whether it is a critical bearish sign for the cryptocurrency.
Bitcoin’s price was unable to hold above the $60,500 support level, leading to a short-term bearish trend. It fell further below $58,000 and found a low at $56,378 before entering a consolidation phase.
With the price now trading below $58,500 and the 100 hourly Simple Moving Average (SMA), immediate resistance is expected around the $58,000 level. Additionally, there is a significant bearish trend line forming with resistance at $58,000.
If the price manages to break above the $60,500 resistance, it could potentially reach the next resistance level at $61,500. This could lead to a further upward movement, with a possible target of $63,500.
On the other hand, if Bitcoin fails to rise above the $58,500 resistance, it may continue to experience downward pressure. Immediate support is anticipated around the $57,000 level, with major support at $56,500. If the price closes below $56,500, it could potentially drop towards the $55,000 support zone. Further losses might see the price reaching the $53,500 support level in the near term.
Technical indicators are showing bearish signals, with the MACD gaining pace in the bearish zone and the RSI for BTC/USD below the 50 level.
It is important to note that this analysis is for educational purposes only and should not be considered as financial advice. It is recommended to conduct thorough research and exercise caution before making any investment decisions.