TA: Bitcoin Stuck in Range, Here’s What Could Trigger More Losses

Bitcoin price is trading in a range below the $57,500 resistance against the US Dollar. BTC is likely to start a major decline if there is a clear break below the $53,500 support zone.

• Bitcoin is struggling to gain momentum above the $56,000 and $56,500 levels.
• The price is now trading well below $56,500 and the 100 hourly simple moving average.
• There is a new declining channel forming with resistance near $55,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could correct higher, but the bulls are likely to struggle near $55,750 and $56,500.

Bitcoin Price Remains At Risk

Bitcoin recovered higher above the $56,000 level, but the bulls failed to gain strength. BTC topped near the $56,400 level and it failed to clear the 100 hourly simple moving average.

A high was formed near $56,404 and the price resumed its decline. It broke the $55,400 support and revisited the $53,500 support zone. A low is formed near $53,650 and the price is now consolidating losses. An immediate resistance is near the $55,050 level.

The 50% Fib retracement level of the recent decline from the $56,404 high to $53,670 low is also near $55,050. The next key resistance is near the $55,400 level.

Source: BTCUSD on TradingView.com

Moreover, there is a new declining channel forming with resistance near $55,750 on the hourly chart of the BTC/USD pair. The channel resistance is close to the 76.4% Fib retracement level of the recent decline from the $56,404 high to $53,670 low.

Above the channel resistance, the main range resistance is near the $57,500 level. A successful break above the channel resistance and then a follow up move above $57,500 is must to start a fresh rally.

Downside Break in BTC?

If bitcoin fails to clear the $55,050 and $55,500 resistance levels, it could correct lower. An immediate support on the downside is near the $54,000 level.

The first key support is near the $53,500 level and the channel lower trend line. Any more losses may possibly call for a downside break towards the $51,000 and $50,000 levels.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

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

Major Support Levels – $54,000, followed by $53,500.

Major Resistance Levels – $55,050, $55,500 and $56,500.

Source