Is This the Start of a Bigger Drop?

Bitcoin price started another decline below the $57,200 zone. BTC is showing bearish signs and might soon test the $55,000 support zone.

• Bitcoin is gaining pace below the $58,000 support zone.
• The price is trading below $57,500 and the 100 hourly Simple moving average.
• There was a break below a connecting bullish trend line with support at $58,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could struggle to recover above the $57,650 or $58,000 resistance levels in the near term.

Bitcoin Price Takes Hit

Bitcoin price extended losses below the $57,500 support levels. BTC even traded below the $57,200 support. There was a break below a connecting bullish trend line with support at $58,900 on the hourly chart of the BTC/USD pair.

A low was formed at $55,591 and the price recently started a recovery wave. There was a move above the $56,000 and $56,200 resistance levels. It cleared the 23.6% Fib retracement level of the downward move from the $59,773 swing high to the $55,591 low.

Bitcoin is now trading below $58,000 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $57,650 level or the 50% Fib retracement level of the downward move from the $59,773 swing high to the $55,591 low.

The first key resistance is near the $58,000 level. A clear move above the $58,000 resistance might send the price further higher in the coming sessions. The next key resistance could be $58,800. A close above the $58,800 resistance might spark more upsides. In the stated case, the price could rise and test the $60,000 resistance.

More Downsides In BTC?

If Bitcoin fails to rise above the $58,000 resistance zone, it could start another decline. Immediate support on the downside is near the $56,350 level.

The first major support is $55,500. The next support is now near the $55,200 zone. Any more losses might send the price toward the $53,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now 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 – $56,350, followed by $55,500.

Major Resistance Levels – $57,650, and $58,000.