Bitcoin is down almost 5% today as the primary cryptocurrency broke listed below an increasing wedge development. BTC reached as high as $59,600 yesterday, touching the upper limit of the wedge. However, the high dive started from there.
As pointed out yesterday, bitcoin was trading inside an increasing wedge pattern, which for the most part tends to break to the drawback. This is what occurred this time also.
After breaking towards the bearish side, BTC continued to drop however handled to find solid assistance around the $54,755 (.382 Fib) level – – best seen on the following 1-hour chart.
Taking a look at the longer-term chart, BTC still looks healthy, but it likewise seems having a hard time to stay above the 20-day moving typical line. The last time bitcoin saw a full-body candle below the MA-20 line was mid-April, and it lost over 20% following the breakdown (reaching April lows at around $46k – – $47k).
When the increasing wedge was broken, and together with the worldwide markets’ 2-day bearishness, we might see bitcoin retesting lower assistance zones before the extension of the uptrend.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $55,120, $54,755, $54,000, $52,375, $51,800.
Secret Resistance Levels: $56,000, $56,750, $58,355, $60,000.
Looking ahead, if the bears press below $55,120 (20-day MA), the first support lies at $54,755 (.382 Fib). This is followed by $54,000, $52,375 (.5 Fib & & April support), $51,800 (.618 Fib), and $50,000.
On the other side, the very first resistance is expected at $56,000. This is followed by $56,750 (the substantial level of the 50-day MA), $58,355 (Feb 2021 highs), the falling pattern line, and $60,000.
The RSI has now slipped beneath the midline, indicating the bearish momentum is starting to increase. If it continues lower below 50, the bearish momentum is most likely to drive BTC back toward $50,000.