Bitcoin price is trading in a range below the $57,500 resistance against the US Dollar. BTC is likely to start a major decline if there is a clear break below the $53,500 support zone.
Bitcoin is struggling to gain momentum above the $56,000 and $56,500 levels.
The price is now trading well below $56,500 and the 100 hourly simple moving average.
There is a new declining channel forming with resistance near $55,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but the bulls are likely to struggle near $55,750 and $56,500.
Bitcoin Price Remains At Risk
Bitcoin recovered higher above the $56,000 level, but the bulls failed to gain strength. BTC topped near the $56,400 level and it failed to clear the 100 hourly simple moving average.
A high was formed near $56,404 and the price resumed its decline. It broke the $55,400 support and revisited the $53,500 support zone. A low is formed near $53,650 and the price is now consolidating losses. An immediate resistance is near the $55,050 level.
The 50% Fib retracement level of the recent decline from the $56,404 high to $53,670 low is also near $55,050. The next key resistance is near the $55,400 level.
Source: BTCUSD on TradingView.com
Moreover, there is a new declining channel forming with resistance near $55,750 on the hourly chart of the BTC/USD pair. The channel resistance is close to the 76.4% Fib retracement level of the recent decline from the $56,404 high to $53,670 low.
Above the channel resistance, the main range resistance is near the $57,500 level. A successful break above the channel resistance and then a follow up move above $57,500 is must to start a fresh rally.
Downside Break in BTC?
If bitcoin fails to clear the $55,050 and $55,500 resistance levels, it could correct lower. An immediate support on the downside is near the $54,000 level.
The first key support is near the $53,500 level and the channel lower trend line. Any more losses may possibly call for a downside break towards the $51,000 and $50,000 levels.
Technical indicators:
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.
Major Support Levels – $54,000, followed by $53,500.
Major Resistance Levels – $55,050, $55,500 and $56,500.
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