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06/09/24
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Bitcoin Struggles at Resistance with $55,600 Support in Sight
Bitcoin’s recent performance has shown a decline, with its price reapproaching the $55,600 support level. The cryptocurrency is currently facing difficulties as it attempts to breach the $57,000 resistance level, indicating a challenging short-term outlook for BTC investors.
Despite a brief attempt to recover above $57,500, Bitcoin’s upward momentum was thwarted by heavy selling pressure at around $58,500, resulting in a peak of $58,508 followed by a significant pullback. After revisiting the $55,600 support zone, where a low was established at $55,601, Bitcoin began to experience a slight recovery. It managed to surpass resistance levels of $56,000 and $56,200, breaking through the 23.6% Fibonacci retracement level corresponding to its recent downward movement.
At present, Bitcoin is trading below $57,200 and the 100-hourly Simple Moving Average. The price has encountered resistance near $57,000, compounded by the establishment of a bearish trend line with an additional resistance point at $57,050. This trend line aligns closely with the 50% Fibonacci retracement level from the high of $58,508 to the low of $55,601, further complicating potential upward momentum. The next crucial resistance level to watch is at $57,750; successfully breaking through this level may set the stage for further increases.
Conversely, should Bitcoin fail to climb above $57,750, it may be poised for another decline. Immediate support is anticipated at the $56,000 threshold, with more significant support levels established at $55,600 and $55,000. If selling continues, a drop towards the $53,500 level could occur.
Technical indicators suggest a bearish bias, with the hourly MACD showing signs of losing momentum, and the Relative Strength Index (RSI) hovering near the neutral level of 50.
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