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05/07/24
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Technical Outlook on the Performance of Bitcoin (BTC)
The chart of BTC/USD shows that it was difficult for the bulls to initiate a modest recovery back to the upside, especially above the barrier level at $61.5k. The bears continued to do their best and there was a downside move beneath the support area at $60k. The bears pulled BTC steeply beneath $58.5k.
The downside moves continued, and there was a spike beneath $57k. BTC has fallen to levels beneath $56k while there is an attempt to consolidate losses. It appears that it is difficult for the bulls to initiate a move to recover from the low levels, as BTC is currently trading beneath the 23.6% Fibonacci correction level of the fall from $63.8k swing high to $56,650 low.
A look at its 1-hour chart shows that its current performance is at levels beneath $60k as well as below the 100 SMA. The same chart shows the formation of a major declining trend line with a barrier level at $58,350.
The ability of the bulls to bring about a modest upside move may lead to the barrier level at $57.5k. The initial major barrier level is close to $58,350, as well as near the trend line. If BTC is pushed clearly above the trend line, the bulls may be able to bring about a move towards $60k.
The immediate major barrier level may be encountered at $60.2k, as well as at the 50% Fibonacci correction level of the fall from $63.8k swing high to $56,650 low. The ability of the bulls to pull BTC clearly past the barrier level at $60.2k may initiate a steady upside move and push it further higher. In this situation, the bulls may be able to pave the way for a visit to the barrier level at $61.5k.
On the other hand, the failure of the bulls to push BTC clearly past $58,350 may empower the bears to keep its performance towards the downside. The next support level on the way downward exists at $55.3k.
The initial key support level is located at $55.1k, while the immediate support level is being formed close to $54.8k. If there are any additional losses, the bears may be able to pave the way for a move towards the support area at $54k over the coming few sessions.
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