Bitcoin price started a major downside correction and it traded below $55,000 against the US Dollar. BTC is showing a few bearish signs and it could extend losses towards $52,000.
- Bitcoin started a major decline and it broke the $58,000 and $55,000 support levels.
- The price is now trading well below $58,000 and the 100 hourly simple moving average.
- There was a break below a crucial bullish trend line with support near $58,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is trading near $53,500 and it could correct higher in the short-term.
Bitcoin Price Declines Sharply
After a rejection above the $60,000 level, bitcoin started a major downside correction. BTC broke many important supports near $58,000 to move into a short term bearish zone.
There was also a break below a crucial bullish trend line with support near $58,100 on the hourly chart of the BTC/USD pair. The pair accelerated its decline below the $55,500 and $55,000 support levels. Finally, it tested the $53,000 support zone and formed a low at $53,174. It is now trading well below $58,000 and the 100 hourly simple moving average. On the upside, an initial resistance is near the $54,950 level. It is close to the 23.6% Fib retracement level of the downward move from the $60,705 high to $53,174 low.
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The first major resistance is forming near the $57,000 level. The 50% Fib retracement level of the downward move from the $60,705 high to $53,174 low is also near $57,000. The main resistance is forming near the $58,000 level (the recent breakdown zone). A close above $58,000 is must to move back into a positive zone.