Bitcoin price extended its decline and tested the $ 55,500 support against the US Dollar. BTC is currently recovering, but it is likely to encounter strong resistance near the $ 57,500 level.
Bitcoin is fighting
Bitcoin was unable to hold the $ 57,000 zone and extended its decline towards the $ 55,500 level.
The price is currently trading well below the $ 57,500 support and the 100 hourly simple moving average.
There was a break below a key contract triangle with support near $ 57,450 on the hourly chart of the BTC / USD pair.
The pair could have corrected higher, but the bulls will likely face strong selling interest around $ 57,500.
If Bitcoin fails to move above $ 57,000 and $ 57,500, there could be further declines. The first major downside support is near the $ 56,000 level.
The main support is currently forming near the $ 55,500 level. A negative break below the recent low and below $ 55,500 could accelerate losses. The next target for bears could be $ 53,200 or even $ 52,500 in the near term.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is still well below the 50 level.
Major Support Levels – $ 56,000 followed by $ 55,500.
Major Resistance Levels – $ 57,000, $ 57,500 and $ 58,000.