Bitcoin Extends Decline, Here’s Why BTC Remains At Risk Below $56K

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

Bitcoin remained in a short-term bearish zone and it extended its decline to $53,000.
The price is now trading well below the $56,000 level and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $55,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but it is likely to struggle near $56,000 and $56,500.

Bitcoin Price is Facing Hurdles
Bitcoin failed to recover above the $57,000 barrier and it extended its decline. BTC traded below the $54,000 support zone and it even declined below $53,200.
There was a spike below $53,000 and the price traded as low as $52,943. It is now correcting higher and trading above the $54,000 level. There was a break above the 23.6% Fib retracement level of the recent drop from the $59,040 swing high to $52,943 low.
It is now trading well below the $56,000 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $55,200 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com
If there is an upside break above the trend line resistance, it could correct higher towards the $55,500 resistance zone. The 50% Fib retracement level of the recent drop from the $59,040 swing high to $52,943 low is also near the $55,600 level.
The next key resistance is near the $56,000 level. A close above the $56,000 level might increase the chances of a steady increase above the 100 hourly simple moving average.
More Losses in BTC?
If bitcoin fails to clear the $55,500 resistance or $56,000, it could start a fresh decline. An initial support on the downside is near the $54,200 level.
The first key support is near the $53,400 level, below which the price might revisit the $52,943 low. Any more losses could open the doors for a drop towards the $52,000 support zone.
Technical indicators:
Hourly MACD – The MACD is struggling to gain pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is recovering towards the 50 level.
Major Support Levels – $54,200, followed by $53,000.
Major Resistance Levels – $55,500, $56,000 and $58,500.

Ora Goodwin
Ora Goodwin
I am a well-known and respected author in the cryptocurrency field. I have been writing about Bitcoin and other digital currencies for over 5 years, and my work has appeared in some of the most respected publications in the space. I am also a regular speaker at industry events, and my insights into the crypto market are highly sought after by both media and investors. In addition to my writing and speaking engagements, I am also an active advisor to several blockchain startups, and I sit on the board of directors for the Blockchain Education Network.

Similar Articles

Most Popular

The Binary Holdings Spearheads Telecom Revolution with Successful Global Pre-Sale, Setting Stage for Web3 Integration

The successful pre-sale not only demonstrates the robust market demand for The Binary Holdings' innovative solutions but also signifies a pivotal moment in the...

SolidViolet Announcing Forthcoming Exchange to Address Compliance and Liquidity Issues in DeFi and RWAs

– Dinari today announced the upcoming release of a new compliant exchange, SolidViolet. Teased on stage last week at TokenizeThis, Dinari is setting...

Kommunitas Successfully Completes 31st Token Burn, Eliminating Over 424 Million $KOM Tokens to Strengthen Market Position

Strategic Burn Reinforces Token Scarcity and Highlights Commitment to Enhancing Token Value Through Community Engagement : Leading decentralized crowdfunding ecosystem Kommunitas announces its 31st token...

Use quantitative trading to increase your passive income – earn 1,000+ per day

Passive income is one of the best ways to boost your earnings during this upcoming crypto bull market, allowing you to enhance your portfolio...

Pitch Dojo is Going REMOTE! #Global

Get ready to witness the monthly OPL pitch competitions from anywhere in the world! Press Release / Santa Clara, California , Here at OnePiece Labs,...

Playermon Unveils PvP Battles in Exciting Version 3.0 Launch

Location, May 1, 2024 – Playermon, a leading name in the blockchain gaming landscape, has announced the successful launch of its highly anticipated Player-vs-Player...

Solvent.app Launches Revolutionary AI-Enhanced Bot Network on Solana Blockchain with Ongoing $SOLV Token Presale

April 15, 2024 – – Solvent.app, an innovative blockchain protocol, has officially announced the launch of its AI-enhanced, bot-driven revenue generation system on...