Bitcoin’s price has taken a sharp downturn recently, falling below the $60,000 mark. This decline is seen as a short-term downtrend, with potential hurdles near the $62,000 level.
The price of Bitcoin started to decline from the $62,550 resistance level and is currently trading below $61,500 and the 100 hourly Simple Moving Average. On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance at $62,400.
After failing to recover above $63,500, Bitcoin struggled to stay above $63,000 and began another decline. The price dropped below $62,000, $61,500, and even reached as low as $58,448 before starting to correct its losses.
Currently, the price is trading below $61,500 and the 100 hourly Simple Moving Average. If there is a recovery, the price may face resistance near the $61,500 level, with major resistance levels at $62,150 and $62,500. A move above $62,500 could signal a steady increase towards $63,500 and possibly even $65,000 in the near future.
However, if Bitcoin fails to climb above the $62,500 resistance zone, it could continue to move downwards. Immediate support is around $61,200, with major support levels at $60,000 and $58,500. Further losses might push the price towards the $57,000 support zone.
Technical indicators show that the MACD is gaining pace in the bearish zone, while the RSI for BTC/USD is below the 50 level. This suggests that there may be more downward movement in the short term.
In conclusion, while the recent price drop in Bitcoin may be concerning for some investors, it is essential to remember that investing in cryptocurrencies carries risks. It is always recommended to conduct thorough research and analysis before making any investment decisions. By staying informed and vigilant, investors can navigate the volatile cryptocurrency market more effectively and make sound investment choices.