Bitcoin (BTC) Price Dips Again and Retests the $55,600 Support Zone

Bitcoin price attempted a recovery wave above the $57,500 level. However, the bears were active near the $58,500 resistance level.

Bitcoin price attempted a recovery wave above the $57,500 level on Monday. However, the bears were active near the $58,500 resistance level. A high was formed at $58,508 and the price started another decline. It retested the $55,600 support zone. A low was formed at $55,601 and the price recently started a recovery wave. There was a move above the $56,000 and $56,200 resistance levels. It cleared the 23.6% Fib retracement level of the downward move from the $58,508 swing high to the $55,601 low.

Bitcoin is now trading below $57,200 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $57,000 level. There is also a connecting bearish trend line forming with resistance at $57,050 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the downward move from the $58,508 swing high to the $55,601 low.

The first key resistance is near the $57,750 level. A clear move above the $57,750 resistance might send the price further higher in the coming sessions. The next key resistance could be $58,500. A close above the $58,500 resistance might spark more upsides. In the stated case, the price could rise and test the $60,000 resistance.

Another Decline In BTC?

If Bitcoin fails to rise above the $57,750 resistance zone, it could start another decline. Immediate support on the downside is near the $56,000 level. The first major support is $55,600. The next support is now forming near the $55,000 zone. Any more losses might send the price toward the $53,500 support in the near term.

Technical indicators

Hourly MACD – The MACD is now losing pace in the bearish zone.

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

Major Support Levels – $56,000, followed by $55,600.

Major Resistance Levels – $57,050, and $57,750.