Bitcoin Turns Red, Why Bears Aim A Retest of $55K

Bitcoin price extended decline below the $60k support against the US Dollar. BTC could extend losses towards $55k in the coming sessions.

Bitcoin started a fresh decline below the $65k and $62k support levels.
The price is now trading below $60,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $61,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend losses below the $58,500 and $57,500 support levels in the near term.

Bitcoin Price Gains Bearish Momentum

Bitcoin price started a fresh decline from well above the $65,000 zone. BTC traded below the key $65,000 support level to enter a bearish zone.

There was a clear break below the $62,000 support and the 100 hourly simple moving average. Finally, the price traded below the main $60,000 support zone. A low is formed near $58,630 and the price is now consolidating losses.

On the upside, an immediate resistance is near the $60,000 level. The first major resistance is near the $60,450 level. It is close to the 23.6% Fib retracement level of the key decline from the $66,350 swing high to $58,630 low.

There is also a key bearish trend line forming with resistance near $61,000 on the hourly chart of the BTC/USD pair. A clear break above $61,000 resistance may possibly call open the doors for a steady recovery. The next major resistance sits near the $62,500 level.

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the key decline from the $66,350 swing high to $58,630 low is also near the $62,500 level to act as a key hurdle. A move above the $62,500 level might start a fresh rally.

More Losses in BTC?

If bitcoin fails to recover above the $61,000 resistance zone, it could extend decline. An immediate support on the downside is near the $58,800 level.

The first major support is now forming near the $58,650 level. The next major support is near the $58,000 level, below which the bears might aim a retest of the $55,000 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 – $58,500, followed by $58,000.

Major Resistance Levels – $60,450, $61,000 and $62,500.

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