Bitcoin price plunges 5%: Can it turn the tide this week?

Bitcoin price failed to break through the $62,850 resistance area and then started a new round of decline, falling by 5% and testing the $58,000 support. The decline has caused Bitcoin to trade below the $60,000 range, and is also below $61,500 and the 100 hourly simple moving average.

On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance close to $60,000. This technical pattern suggests that Bitcoin price may face challenges to the upside at the current stage, especially when trying to break through the $60,850 resistance area.

Bitcoin price struggled above the $62,850 resistance level and failed to initiate a decent rebound wave. Subsequently, the bears took control of the market and pushed BTC below the $61,200 support area and even below the $60,000 mark. The price touched a low of $57,890 and is currently consolidating its losses. Although the price has since recovered and surpassed $58,500, it has not yet touched the 23.6% Fibonacci retracement level of the downtrend from the $63,798 swing high to $57,890 low.

The price remains below $61,500 and the 100 hourly simple moving average, while it is also below the 50% Fibonacci retracement level of the same downtrend. Any rebound in the price is likely to face resistance near the $60,000 level and at the trendline. The first major resistance is near $60,850, above which the price is likely to test the $61,500 resistance. Only a clear break above the $61,500 resistance could start a steady rise that could push the price higher and test the $62,250 resistance. A bigger rise could take Bitcoin closer to the $63,500 resistance area in the near term.

If Bitcoin fails to climb above the $60,000 resistance area, it is likely to continue its decline. The immediate support on the downside is around $58,250, while the main support is at $58,000. If the price falls further, the next support level will be formed around $57,800, and a larger decline may cause the price to approach the support area of ​​$56,500 in the short term.

From the technical indicators, the hourly MACD is accelerating downward in the bear market area, and the hourly RSI has also fallen below 50, showing the short-term correction pressure of the market.