Bitcoin has recently closed the gap toward $60,000. However, a monthly high formed at $59,612 cut short the bullish advances. Perhaps due to exhaustion in the bullish camp, a correction came to the picture. The retreat occurred in tandem with other crypto assets like Ethereum’s drop from $4,216 to under $3,800.
Meanwhile, the cryptocurrency market is in bloodshed, with most tokens posting double-digit losses. Bitcoin extended the bearish leg under several tentative technical levels. For instance, the confluence around $57,000 formed by the 50 Simple Moving Average (SMA) and as well as the 100 SMA.
The region at $56,000 did little to prevent the losses, allowing sellers to increase their positions, anticipating the bellwether cryptocurrency to drop to $50,000.
At the time of writing, Bulls look forward to securing the support at $55,000. Note that Bitcoin trades slightly above $55,000 amid the bearish push. Various technical levels hint at the bearish picture lasting longer.
The Moving Average Convergence Divergence (MACD) has a massive bearish impulse, especially after striking the negative region. Similarly, the MACD line divergence from the signal line is a key indicator of a solid bearish grip.
BTC/USD four-hour chart
Simultaneously, the Relative Strength Index (RSI) has reinforced for bearish narrative after dropping from highs close to the overbought region to levels nearing the oversold area. As long as its gradient remains negative, Bitcoin price would keep dropping until formidable support is established.
It is worth mentioning that a four-hour candlestick close above $55,000 would ensure that bears are kept at bay. This will give the bulls the ability to shift attention from defense to reclaiming the price levels toward $60,000.
Bitcoin intraday levels
Sport rate: $55,340
Support: $54,000 and $50,000
Resistance: $56,000 and $58,000