Bitcoin has recently experienced a downward movement, slipping below the $60,000 level amidst growing bearish pressure. After failing to bounce back above the $62,500 level, the cryptocurrency is now precariously positioned, eyeing the critical support level of $56,500.
The momentum shifted as Bitcoin traded beneath the $62,000 support level, signaling a strong bearish trend. Currently, it is trading below both the $62,000 level and the 100-hour Simple Moving Average, indicating a bearish outlook. A significant trend line now forms resistance at approximately $61,500, suggesting that the pair may continue to slide toward the $56,500 support where potential buying interest could emerge.
Following a downturn, Bitcoin hit a low of $58,009 before trying to stabilize. While there was a modest bounce around the $58,500 and $59,000 levels, it still faced challenges trading near the 23.6% Fibonacci retracement level of the recent decline from $65,070 to $58,009. Persistently trading under the $61,500 resistance zone, the next immediate challenge is likely to be around $59,800, with the first key resistance firmly at $60,000. A decisive move past this level could trigger further upward movement in the coming hours.
Nevertheless, failure to breach the $60,000 resistance may promote additional declines. Key support levels to watch include the immediate support at $58,500 and more substantial support at $58,000. Should the downward trend persist, Bitcoin could potentially revisit the $57,650 area and, in a worst-case scenario, sink toward the vital $56,500 support level. Current technical indicators reflect this bearish sentiment, with the MACD indicating a stronger presence in the negative territory and the RSI positioned below the neutral midpoint.
