Bitcoin (BTC) Price Starts Downside Correction, Might Decline toward the $57,500 Support Zone

Bitcoin price started a decent increase after it broke the $58,500 resistance zone. BTC was able to climb above the $59,500 resistance. The pair even

Bitcoin price failed to clear the $60,650 resistance. BTC is now correcting gains and might decline toward the $57,500 support zone.

Bitcoin Price Analysis

Bitcoin started a decent recovery rally this week after it finally broke the crucial $58,500 resistance zone. As a result of the bulls’ efforts, BTC was able to climb above the $59,500 resistance level. The pair even cleared the $60,000 resistance zone.

However, the bears seem to be active once again as the price approaches the $60,650 resistance zone. A high was formed at $60,638, and from the looks of it, the price is now correcting those gains. There was a drop below the $59,500 level. The price even dipped below the 23.6% Fib retracement level of the upward move from the $55,548 swing low to the $60,638 high.

There was also a break below a key bullish trend line with support at $60,000 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $58,800 and the 100 hourly Simple moving average.

On the upside, the price could face resistance near the $59,200 level. The first key resistance is forming near the $60,000 level once again. A clear move above the $60,000 resistance might spark a steady increase in the coming sessions. The next key resistance could be $60,650. A close above the $60,650 resistance might spark more upsides. In the stated case, the price could rise and test the $62,000 resistance.

More Downsides In BTC?

If Bitcoin fails to rise above the $59,200 resistance zone, it could continue to move down. Immediate support on the downside is forming near the $58,000 level or the 50% Fib retracement level of the upward move from the $55,548 swing low to the $60,638 high.

The first major support is forming at $57,500. The next support is now forming near the $56,750 zone. Any more losses might send the price toward the $55,550 support in the near term.

Technical Indicators

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

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

Major Support Levels – $58,000, followed by $57,500.

Major Resistance Levels – $59,200, and $60,000.