Bitcoin risks dropping towards the $55k level
The cryptocurrency market continues to underperform heading into the weekend, and BTC and others could record further losses.
The crypto market has been correcting since the start of the week, with Bitcoin losing nearly 20% of its value over the past few days. Bitcoin began the week trading above $65k per coin, but it is now struggling to stay above the $57k level.
The bears are in control of the market, and the losses could increase if the current market momentum doesn’t change. At press time, Bitcoin is trading at $57,074 per coin, down by 17% from the all-time high of $69,044 it achieved roughly two weeks ago.
Key levels to watch
The BTC/USD 4-hour chart is extremely bearish at the moment, thanks to Bitcoin’s recent poor performance. The MACD line is below the neutral zone, while the RSI of 33 shows Bitcoin is currently oversold.
The technical indicators show that Bitcoin could face further selling pressure over the coming hours and days. Bitcoin is trading way below its 100-day simple moving average of $62,144 as the bearish sentiment grows stronger.
What to expect
The cryptocurrency market is very bearish at the moment, and the prices of Bitcoin and other cryptocurrencies could experience further downside over the coming days. If the current momentum is maintained, then Bitcoin could be forced to defend its first major support at $56,082.
However, if the bears continue to remain in control over the coming hours and days, then Bitcoin risks dropping below the $55k level for the first time since 11 October. Unless the bearish sentiment grows stronger, Bitcoin could defend the $53k psychological level over the coming days.
On the flip side, the bulls could regain control of the market and push BTC towards the first resistance point at $60,378. In the event of an extended rally, BTC could soar higher and aim for the $62k resistance level over the next few hours.