June 22, 2021

TA: Bitcoin Trims Gains, Here’s Why The Bulls Could Struggle Near $57K

2 min read

Bitcoin cost failed to continue higher towards $60,000 versus the US Dollar. BTC declined sharply and tested the $54,500 assistance zone, where the bulls decided.

  • Bitcoin stopped working to extend gains and it formed a short-term top near the $59,000 level.
  • The rate is now trading well below the $57,000 level and the 100 hourly simple moving average.
  • There was a break listed below a significant bullish pattern line with support near $57,300 on the per hour chart of the BTC/USD pair (data feed from Kraken).
  • The pair could remedy losses, however the bulls may deal with sellers near $57,000 and $57,400.

Bitcoin Price Corrects 4%

Bitcoin attempted more benefits above the $58,500 resistance level. BTC tested the $59,000 zone, however it stopped working to continue higher. A high was formed near $59,028 before it began a downward relocation.

The price broke the $58,000 and $57,000 assistance levels. There was a break below a significant bullish trend line with assistance near $57,300 on the per hour chart of the BTC/USD set. There was likewise a spike below the $55,000 support level.

It is now trading well below the $57,000 level and the 100 hourly basic moving average. A low is formed near $54,665 and the price is now trying a recovery. Bitcoin broke the $55,500 resistance level. There was a break above the 23.6% Fib retracement level of the recent decrease from the $59,028 high to $54,665 low.

Bitcoin Price

 Source: BTCUSD on TradingView.com

On the benefit, a preliminary resistance is near the $56,800 level and the 100 hourly basic moving average. The 50% Fib retracement level of the recent decrease from the $59,028 high to $54,665 low is likewise near $56,800.

The primary resistance is now forming near the $57,000 zone. A successful break above the $56,800 and $57,000 resistance levels could unlock for a fresh move towards the $59,000 level.

More Losses in BTC?

If bitcoin stops working to clear the $56,800 resistance, it could correct lower once again. An initial assistance on the downside is near the $55,000 level.

The very first crucial assistance is near the $54,500 level and the recent low. A downside break listed below the $54,500 support may require a drop towards the $52,000 assistance zone.

Technical signs:

Hourly MACD –– The MACD is gradually recuperating and losing speed in the bearish zone.

Hourly RSI (Relative Strength Index) –– The RSI for BTC/USD is well below the 50 level.

Significant Support Levels –– $55,000, followed by $54,500.

Major Resistance Levels –– $56,800, $57,000 and $58,500.