Bitcoin Resumes Decline, What Could Trigger More Downsides

Bitcoin price failed to stay above $60,000 and started a fresh decline against the US Dollar. BTC could extend losses below $55,000 in the near term.

Bitcoin started a fresh decline from the $61,000 resistance zone.

The price is now trading below $58,000 and the 100 hourly simple moving average.

There is a key bearish trend line with resistance near $58,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair could extend losses below $55,500 and $55,000 in the near term.

Bitcoin price attempted a recovery wave above the $60,000 level. However, BTC failed to gain strength above $60,500 and started a fresh decline. There was a sharp decline below $60,000 and the 100 hourly simple moving average.

The bears gained strength for a move below the $58,000 support level. The price even traded below the $56,500 level. A low is formed near $55,858 and the price is still trading with a bearish angle.

An initial resistance on the upside is near the $56,500 level. The first major resistance is near the $57,000 level. It is close to the 23.6% Fib retracement level of the recent decline from the $60,964 swing high to $55,858 low. There is also a key bearish trend line with resistance near $58,000 on the hourly chart of the BTC/USD pair.

The main resistance is now forming near the $58,000 and $58,500 levels. It is close to the 50% Fib retracement level of the recent decline from the $60,964 swing high to $55,858 low.

A proper close above the $58,500 level could set the tone for a steady recovery. The next major resistance is near the $59,800 and $60,000 levels. Any more gains could open the doors for a move towards the $61,200 level.

If bitcoin fails to recover above the $58,000 resistance zone, it could extend decline. An immediate support on the downside is near the $55,500 level.

The first major support is now forming near the $55,200 level. The next major support is near the $55,000 level, below which the bears might aim more downsides. In the stated case, the price may perhaps slide towards the $53,500 support zone 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 well below the 50 level.

Major Support Levels – $55,500, followed by $55,000.

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