Bitcoin price is forming another top near the $5,950 resistance area. BTC/USD is declining again and it is likely to accelerate lower towards the $4,770 and $4,600 levels in the near term.
Recently, there was a bullish spike in the bitcoin price above the $5,500 resistance area. BTC/USD even surpassed the $5,750 resistance and the 25 simple moving average (1-hour, orange).
Looking at the 1-hour chart, the price failed to surpass the $5,950 and $6,000 resistance levels. The bulls made two attempts to clear the $5,950 level, but they failed. As a result, there was a fresh decline below the $5,500 support and the 25 simple moving average (1-hour, orange).
The market data is provided by TradingView, Bitfinex.
Moreover, the price traded below the 23.6% Fib retracement level of the upward move from the $4,020 low to the $5,987 high. The Bitcoin price even traded below the $5,200 support and a connecting bullish trend line on the 1-hour chart.
The price is now trading near the $5,000 support level. Besides, the 50% Fib retracement level of the upward move from the $4,020 low to the $5,987 high is also acting as support.
Therefore, a successful close below the $5,000 support level could spark more losses in the near-term. Initial support is near the $4,770 level, below which the price is likely to test the $4,480 level.
Any further losses may perhaps lead the price towards the $4,250 support level in the near-term. We could also see Bitcoin go into the $3,000s, and that would be its lowest point in more than a year. Conversely, if the Bitcoin price stays above the $5,000 support, it could start a decent recovery. Having said that, there are many hurdles on the upside near the $5,200 and $5,400 levels.