Bitcoin Holds Key Support, Why BTC Remains At Risk of Sharp Decline

Bitcoin Holds Key Support, Why BTC Remains At Risk of Sharp Decline

Research
November 23, 2021 by mvp00
21
Bitcoin retested the $55,500 support zone against the US Dollar. BTC is recovering, but it could face a strong selling interest near $57,500 in the near term. Bitcoin settled below the key $58,000 and $57,500 resistance levels. The price is now trading below $57,500 and the 100 hourly simple moving average. There is a major
Depositphotos_39681551_s-2019.jpg

Bitcoin retested the $55,500 support zone against the US Dollar. BTC is recovering, but it could face a strong selling interest near $57,500 in the near term.

  • Bitcoin settled below the key $58,000 and $57,500 resistance levels.
  • The price is now trading below $57,500 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is recovering, but upsides might be limited above the $57,500 resistance zone.

Bitcoin Price Remains At Risk

Bitcoin price started a fresh decline from the $59,500 zone. BTC gained pace below the $58,500 and $57,500 support levels to enter a bearish zone.

The decline gained pace below the $56,500 level and the price retested the $55,500 support zone. A low is formed near $55,633 and the price is now correcting losses. There was a break above the $56,500 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $59,411 swing high $55,633 low.

However, bitcoin price is now trading below $57,500 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

An immediate support is near the $56,500 level. The first major support is now forming near the $55,500 level. A downside break below the $55,500 level could spark more losses. In the stated case, the price might decline towards the $55,000 level. Any more losses may perhaps lead the price towards the $52,000 support zone in the near term.

Upside Capped In BTC?

If bitcoin stays above the $56,500 support, it could attempt a fresh recovery wave. On the upside, an initial resistance is near the $57,200 level. The first key resistance is near the $57,500 level.

It is near the 50% Fib retracement level of the downward move from the $59,411 swing high $55,633 low. The next major resistance sits near the $58,000 level and the 100 hourly simple moving average, above which the price might rise towards the $60,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly moving into the bullish zone.

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

Major Support Levels – $56,500, followed by $55,500.

Major Resistance Levels – $57,500, $58,000 and $60,000.

Add a comment