Bitcoin that had made yet another comeback from low levels has plunged again. In the last 24 hours, Bitcoin that had started to touch the ATH range of $60K has experienced a setback to the $55,500 mark once more. The current position of the cryptocurrency has been marked as a support position in terms of 100 simple moving average or H4. At the $58K mark, the flagship cryptocurrency experienced a break below the key contracting triangle as per the BTC/USD pair analytics issued by Kraken.
When Bitcoin was attempting to transition from $58K to $59K price points, the chances of higher volatility made it more resistant. However, there was no follow-through in the end, and the cryptocurrency ended up pulling back to the $55K. The presence of a key contracting triangle at these high levels also points towards a bearish reaction that took Bitcoin below the $58,500 and $58,000 support levels.
Can Bitcoin Dive even Lower?
The technical analysis of Bitcoin 100 simple avg. shows that when it traded below $53,445, there was an attempt to correct the losses and recover. Eventually, Bitcoin climbed over the 23.6% FIB replacement levels for the recent drop. The range for this replacement is from $59,590 high to $53,445 low. When the price mark has reached the $55,500 support level, the closest resistance is detected at $56,500.
If the leading coin can breach the $57K stripe, a fresh bull raid could be expected, taking Bitcoin above the $59,500 resistance zone without a long-term pause. There have been speculations in the market that long-term investors are dissolving their Bitcoin holdings in favour of Ethereum. Conversely, big institutional names like Facebook have also recently expressed an interest in working with Bitcoin.
More Technical Predictions for a Low Move in the Market
In case Bitcoin is unable to get past the $57,000 level, the possibility of a prevalent bear correction can grow higher. This could happen if Bitcoin falls below $54,500. Moving in that direction, the nearest stop or support range for Bitcoin is $53,500. Any further depreciation can also push the limits by taking the flagship digital asset to the main $52,500 support zone.
Several technical indicators signify these resistance levels. The first two are 4-hour MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index). The MACD is getting slower in the bearish price ranges while RSI is for BTC/USD is dropping down to below 40 levels. Meanwhile, the major support stages are identified at $54,500 and $53,500. Also, major resistance levels can be pinned at $56,500, $57,000, and $59,500.