Market Reels From Sharp Decline

Bitcoin price gained bearish momentum and traded below $60,000. BTC is signaling a short-term downtrend and might face hurdles near $62,000.

• Bitcoin started a fresh decline from the $62,550 resistance level.
• The price is trading below $61,500 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance at $62,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could correct higher, but upsides might be limited above the $62,000 resistance zone.

Bitcoin Price Nosedives

Bitcoin price failed to recover above the $63,500 level. BTC struggled above $63,000 and started another decline. There was a strong decline below the $62,000 and $61,500 levels.

The price even declined below the $60,000 level. A low was formed at $58,448 and the price is now correcting losses. There was a minor increase above the $59,800 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $64,460 swing high to the $58,448 low.

Bitcoin price is now trading below $61,500 and the 100 hourly Simple moving average. If there is a recovery wave, the price could face resistance near the $61,500 level.

The first major resistance could be $62,150 or the 50% Fib retracement level of the downward move from the $64,460 swing high to the $58,448 low. The next key resistance could be $62,500. There is also a key bearish trend line forming with resistance at $62,400 on the hourly chart of the BTC/USD pair.

A clear move above the $62,500 resistance might start a steady increase and send the price higher. In the stated case, the price could rise and test the $63,500 resistance. Any more gains might send BTC toward the $65,000 resistance in the near term.

Another Drop In BTC?

If Bitcoin fails to climb above the $62,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $61,200 level.

The first major support is $60,000. The next support is now forming near $58,500. Any more losses might send the price toward the $57,000 support zone 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 – $61,200, followed by $60,000.

Major Resistance Levels – $62,150, and $62,500.