Bitcoin shot up from support established at $53,000. The approached to $60,000 was gradual but steady. Bulls took down several resistance levels, including the 100 Simple Moving Average (SMA), the 50 SMA, and the 200 SMA. However, an immense seller congestion zone at $58,000 became a hard nut to crack.
According to data by CoinGecko, the flagship cryptocurrency has lost 2.4% of its value in the last 24 hours. It has sustained a 4% growth in seven days but lost nearly 4% in the previous 30 days. Bitcoin’s trading volume across numerous platforms averaged at $66 billion and boasted of a $1 trillion market cap.
Bitcoin price correction could extend to $50,000
The bellwether cryptocurrency has corrected from the resistance at $58,000 and currently teeters at $55,630. Two tentative support levels have been lost, including the 200 SMA and the 50 SMA.
Note that the slightest resistance path appears to be downward based on the Moving Average Convergence Divergence (MACD) bearish impulse. The indicator is almost crossing into the negative region. Simultaneously, bearish pressure soar as the MACD line (blue) strikes under the signal line.
BTC/USD four-hour chart
Similarly, the Relative Strength Index (RSI) reinforces the bearish outlook while dropping toward the midline. It also features a bearish divergence from the price.
Therefore, support at the 100 SMA is crucial to the resumption of the uptrend. If push comes to shove, $53,000 must hold to avert the potential losses to $50,000.
Bitcoin intraday levels
Spot rate: $55,630
Support: $55,000 and $53,000
Resistance: $56,000 and $58,000