Bitcoin closing below $56,000 may trigger even greater declines

Bitcoin is trying to break through the 57,200 USD resistance level against the U.S. dollar. BTC is falling, and if it closes below the $56,000 support level, it may accelerate its decline.

  • Bitcoin is working hard to break through the USD 57,000 and USD 57,500 levels.
  • The price is now below $57,000 and the 100-hour simple moving average.
  • On the hourly chart of the BTC/USD currency pair (data feed from Kraken), a key contraction triangle is formed, and the support level is around 56,100 USD.
  • If it clearly breaks below the USD 56,000 support area, the currency pair may accelerate its decline.

Bitcoin price faces obstacles

Bitcoin price failed to start to rise sharply 58,000 USD resistance zone. BTC began to slowly fall and broke through the $57,200 support level to enter the bearish zone.

The closing price was also less than $57,000, 100 hour simple moving averageHowever, the bulls are defending the $56,000 support level. The most recent low was formed near $55,848, and Bitcoin is now consolidating losses above $56,000.

The immediate resistance on the upside is near $56,600. It is close to the 23.6% Fib retracement of the recent swing high of $59,090 to a low of $55,848.

The first major resistance is near 57,000 USD. On the hourly chart of the BTC/USD currency pair, there is also a key contracting triangle formed, and the support level is near US$56,100. The next major resistance is near 57,500 USD. It is close to the 50% Fibonacci retracement of the recent decline, falling from a swing high of $59,090 to a low of $55,848.

A clear break of the USD 57,500 resistance zone may open the door for more gains. The next key resistance is near $58,500, above which the price may rise steadily. The next stop for the bulls may be close to the $60,000 level.

BTC lose more?

If Bitcoin fails to break the resistance zone of $57,500, it may expand its losses. The immediate downside support is near $56,100.

The first major support level is now formed near $56,000. A break below the $56,000 support level may begin to fall sharply. The next stop for the bears may be $53,500.

Technical index:

Hourly MACD – MACD is now accelerating in the bearish zone.

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

The main support level – 56,000 USD, then 55,000 USD.

The main resistance levels – 57,000 USD, 58,500 USD and 58,500 USD.

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