Bitcoin price declined sharply and tested the support zone, where the bulls took a stand

Bitcoin price cannot continue to go higher to $ 60,000. Currently, BTC has plummeted and tested the $ 54,500 support zone, where the bulls hold their stance. At press time, BTC is trading around $ 55,599, down nearly 5% in the past 24 hours.

bitcoin-price-declined-sharply-and-tested-the-support-zone-where-the-bulls-took-a-stand

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price has been unable to prolong the rally, the bulls could face selling pressure near $ 57,000

Bitcoin attempted to rally even more above the $ 58,500 resistance. BTC has tested the $ 59,000 zone, but it cannot continue higher. A high was formed near $ 59.028 before it started to turn down.

The price broke the $ 58,000 and $ 57,000 support levels. There has been a break below the main uptrend line with support near $ 57,300 on the hourly chart of the BTC / USD pair. There was also a spike below the $ 55,000 support.

BTC is currently trading below $ 56,000 and the 100 hourly simple moving average. A low is formed near $ 54,665 and the price is currently attempting to recover. Bitcoin has broken down from the $ 55,500 resistance level. There was a break above the 23.6% Fib retracement level of the recent decline from a high of $ 59,028 to a low of $ 54,665.

On the upside, an initial resistance is close to $ 56,800 and the 100-hour simple moving average. The 50% Fib retracement level of the recent decline from a high of $ 59,028 to a low of $ 54,665 is also close to $ 56,800.

Major resistance is currently forming near the $ 57,000 zone. A successful break above the $ 56,800 and $ 57,000 resistances could open the doors for a new move towards $ 59,000.

If Bitcoin fails to break out of the $ 56,800 resistance, it could correct the lower again. Initial support on the downside is close to $ 55,000. First, important support is near $ 54,500 and the recent low. A drop below the $ 54,500 support level could call for a drop to the $ 52,000 support zone.

bitcoin-price-declined-sharply-and-tested-the-support-zone-where-the-bulls-took-a-stand

Source: Coin360

In a report released earlier this year, JPMorgan Investment Bank forecasts Bitcoin price could reach $ 146,000 in the long term. Bitcoin capitalization also reached the equivalent of $ 2,700 billion. According to JPMorgan, since mid-October 2020, more than $ 3 billion has flowed into the Grayscale Bitcoin Trust and about $ 7 billion has been flowing out of gold ETFs. However, in order to reach this level of capitalization, Bitcoin’s price volatility needs to be more stable for institutional investors to feel secure to invest in large amounts.

According to cryptocurrency advocates, Bitcoin’s recent bull run is attributed to institutional investors who have entered the market and this is seen as a major driver of the digital currency market.

However, many people also believe that this is just a speculative asset with no intrinsic value and that the bubble can explode at any time.

Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.

You can see the BTC price here.

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