The cryptocurrency market plunged, Bitcoin price fell to nearly $ 54,000

Bitcoin price extended its downside and tested the $ 53,000 zone. BTC is correcting higher, but it is facing a lot of hurdles near $ 55,000 and $ 56,000.

the-cryptocurrency-market-plunged-bitcoin-price-fell-to-nearly-54000

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price extended its decline and tested the $53,000, but it is facing a lot of hurdles near $55,000 and $56,000

Bitcoin is still in the short-term bearish zone and it has stretched its decline to $ 53,000, likely to struggle near $ 55,500.

Bitcoin failed to recover above $ 57,000 and it prolonged its decline. BTC was trading below the $ 54,000 support zone and it even fell below $ 53,200.

There was a spike below $ 53,000 and the price was trading as low as $ 52,943. It is currently correcting higher and trading above $ 54,000. There was a break above the 23.6% Fib retracement level of the recent decline from the $ 59,040 high to the $ 52,943 low.

It is currently trading below $ 56,000 and the 100-hour simple moving average. There is also a major downtrend line forming with resistance near $ 55,200 on the hourly chart of the BTC/USD pair.

If there is a break above the resistance line of the trendline, it can correct higher towards the $ 55,500 resistance zone. The next major resistance level is near $ 56,000. A close above $ 56,000 can increase your chances of a steady upside above the 100 hourly simple moving average.

If Bitcoin fails to break through the $ 55,500 or $ 56,000 resistance, it could initiate a new slump. Initial support on the downside is close to $ 54,200. The first critical support is near $ 53,400, below which the price can return to the lows of $ 52,943. Any further losses could open the door for a drop to the $ 52,000 support zone.

The market this morning was in red as the series of smaller-cap altcoins plunged dramatically. Specifically, Ethereum fell 2.59%, Binance Coin decreased 7%, XRP decreased 7.2%, Cardano decreased 4.1%, Polkadot decreased 3.5%. However, there are upstream coins such as Dogecoin up 26%, Litecoin up 8%, Chainlink up 14%.

The overwhelming decline caused the total market capitalization to record an overall decrease of 5.8% to $ 2,180 billion.

You can see the BTC price here.

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