Bitcoin has settled into a period of consolidation around the $58,500 price level, with a crucial need to surpass the $60,500 resistance level to initiate a potential recovery. Recent trading activity showed Bitcoin testing the vicinity of $58,000, followed by a slight upward correction. However, it remains under the $62,000 level and below the 100-hourly simple moving average.
The digital currency encountered strong bearish momentum, dropping below $62,500, eventually touching a low of $58,009. Following this, there was a minor recovery, pushing Bitcoin above $58,500 and $58,800, which coincided with the 23.6% Fibonacci retracement level from a previous swing high of $65,070 down to the $58,009 low. Currently, Bitcoin trades beneath $61,200, indicating ongoing resistance that could impede further gains.
Further analysis of the hourly chart indicates the formation of a significant bearish trend line, with resistance identified around the $60,200 level. For Bitcoin to advance, it will need to decisively breach this resistance level. Should it accomplish this, the subsequent resistance at $61,500 could be tested, approximately aligned with the 50% Fibonacci retracement from the earlier noted highs and lows.
On the downside, if Bitcoin fails to overcome the $60,200 barrier, a downward slide may continue. Immediate support appears around $58,550, with stronger support at $58,000 and a subsequent level near $57,650. If bearish pressure persists, Bitcoin might find itself heading toward a critical support level at $56,500 in the short term.
Technical indicators suggest a weakening bearish momentum with the MACD showing reduced activity in the bearish zone. Furthermore, the relative strength index (RSI) for Bitcoin indicates a position below the neutral 50 level, signaling potential challenges for upward movement in the near future.
