The dynamo of the cryptocurrency world, Bitcoin, has faltered in its recent upward trend, as it recently dipped below $60,000. This downward spiral has set off alarms, indicating a potential short-term bearish trend that could pose significant challenges for the crypto giant as it approaches the $62,000 mark.
Fresh off a plunge that started at the $62,550 resistance level, Bitcoin’s value is wavering below the $61,500 mark in addition to the 100 hourly Simple moving average, a popular method of technical analysis utilized by traders. Further exacerbating these unfavorable circumstances, a critical bearish trend line is materializing, offering resistance at around $62,400, as indicated by the BTC/USD hourly chart pair, with data derived from the cryptocurrency exchange, Kraken.
Despite this downturn, Bitcoin could potentially rectify its losses and edge back up, albeit, gains may be stifled at the $62,000 resistance slot.
In recent times, the price of Bitcoin has behaved like a rollercoaster, failing to regain traction above the $63,500 level, and each attempt to ascend beyond the $63,000 mark hit a snag and spurned a further descent. This precipitous drop has pierced through the $62,000 and $61,500 thresholds and continuing to plummet below $60,000.
During this string of declines, Bitcoin reached a low at $58,448 but has since been making minor adjustments to recoup its losses. A silver lining appears as Bitcoin managed a modest climb above the $59,800 level, shifting past the 23.6% Fibonacci retracement level. This shift marks the descent from the $64,460 swing high to the $58,448 trough.
With Bitcoin’s price remaining under $61,500 and the 100 hourly Simple moving average, its recovery chances could face opposition near the $61,500 mark. The first major hurdle could emerge at $62,150 or the potentially at 50% Fibonacci retracement level—which demarcates the drop from the $64,460 swing high to $58,448 low. Successive resistance may occur at $62,500, echoing the bearish trend line.
Overcoming the $62,500 resistance might trigger a slow but steady increase, pushing the price higher. In that scenario, Bitcoin could see a resurgence that tests the $63,500 resistance. Any additional advances might nudge Bitcoin closer to the $65,000 resistance mark in the foreseeable future.
However, a failure to ascend beyond the $62,500 resistance zone could provoke a continued downturn. Immediate support on the downside presently hovers near the $61,200 level. Major support stands at $60,000, with ensuing support shaping up near the $58,500 mark. Extra losses could potentially plunge Bitcoin’s price to the $57,000 support region.
Examining the technical indicators, both the hourly MACD and hourly Relative Strength Index (RSI) underscore this bearish trend, with the MACD registering a progressive gain in the bearish zone, and RSI for BTC/USD dipping beneath the 50 level. Consequently, potential resistance and support levels may be both enticing and daunting gates of return for Bitcoin traders and investors.
