Last week, bitcoin tried to close the gap to $ 60,000, but resistance at $ 59,612 broke the bullish rally. Due to the weakening of the bulls, a correction came to the crypto market. The retreat happened at the same time as other crypto assets fell, for example, Ethereum fell from $ 4216 to $ 3900.
Altcoins also suffer losses, which in some cases reach double digits. Bitcoin extended its bearish leg below several technical levels, including a merger of about $ 57,000 formed by 50 Simple Moving Average (SMA) as well as 100 SMA.
The $ 56,000 zone did little to prevent losses, allowing sellers to increase their positions, expecting the cryptocurrency to drop to $ 50,000.
At the time of writing, the bulls were looking to get support at $ 55,000, while Bitcoin was trading just above $ 55,000 amid a bearish push. Various technical levels hint that the bearish pattern will continue.
The Moving Average Convergence Divergence (MACD) has a strong bearish momentum, especially after reaching the negative area. Likewise, the deviation of the MACD line from the signal line is a key indicator of a firm bearish grip.
At the same time, the Relative Strength Index (RSI) has strengthened, confirming the bearish trend after falling from the highs close to the overbought area to the levels close to the oversold area. As long as its gradient remains negative, Bitcoin’s price will continue to fall until significant support is established.
At the same time, the close of the four-hour candle above $ 55,000 ensures that the bears will capitulate. This will give the bulls the opportunity to shift their focus from protection to a recovery in price levels around $ 60,000.
Daily Bitcoin levels
Spot Rate: $ 55,340
Trend: bearish
Volatility: low
Support: $ 54,000 and $ 50,000
Resistance: $ 56,000 and $ 58,000
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