TA: Bitcoin Holds Key Support, Why BTC Remains At Risk of Sharp Decline

Bitcoin retested the $55,500 support zone against the US Dollar. BTC is recovering, but it could face a strong selling interest near $57,500 in the near term. Bitcoin settled below the key $58,000 and $57,500 resistance levels. The price is now trading below $57,500 and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is recovering, but upsides might be limited above the $57,500 resistance zone. Bitcoin Price Remains At Risk Bitcoin price started a fresh decline from the $59,500 zone. BTC gained pace below the $58,500 and $57,500 support levels to enter a bearish zone. The decline gained pace below the $56,500 level and the price retested the $55,500 support zone. A low is formed near $55,633 and the price is now correcting losses. There was a break above the $56,500 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $59,411 swing high $55,633 low. However, bitcoin price is now trading below $57,500 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair. Source: BTCUSD on TradingView.com An immediate support is near the $56,500 level. The first major support is now forming near the $55,500 level. A downside break below the $55,500 level could spark ...