Bitcoin has continued to decline and is approaching the $52,600 support level. On the daily chart, BTC/USD is now trading below a significant bearish trend line with resistance at $60,000. Although there is a possibility of a correction, the bears are likely to defend the $60,000 hurdle.
Bitcoin’s price has settled below the $60,000 pivot level and is currently consolidating its losses. It may attempt to break through the $60,000 resistance level in the coming days. However, in our previous analysis, we highlighted the risk of further losses below the $60,000 and $58,500 support levels. BTC has remained in a bearish zone, falling below $58,500 and even reaching the $52,600 support level.
The price briefly recovered above the $56,500 level but is now consolidating its losses. On the daily chart, a key bearish trend line with resistance at $60,000 poses a significant challenge for Bitcoin. In order to initiate a recovery wave and a substantial increase, the price must surpass the $60,000 resistance zone.
If Bitcoin manages to break the $60,000 resistance, the first major resistance level to watch out for is near $62,500. A successful break above this level could lead to a steady increase. The next key resistance lies at $65,000 and the 50-day simple moving average (blue), which could potentially trigger bullish momentum. In this scenario, the bulls may even target the $67,500 region, and further gains could push the price towards the $70,000 resistance level.
However, it is also possible that Bitcoin may struggle near the $58,000 or $60,000 levels and experience another decline. Immediate support on the downside is at $55,000, followed by the first major support at $52,600. A break below the $52,600 support zone could lead to more bearish moves, potentially pushing the price towards the $50,000 support level. Further losses may open the doors for a move towards the $47,000 support zone in the coming days.
Overall, Bitcoin is currently in a short-term bearish zone below $60,000 and the 50-day simple moving average. Unless there is a daily close above $60,000, BTC could see another decline.