Bitcoin price is facing a strong resistance near the $5,500 area. BTC/USD is likely to continue lower if it fails to surpass the $5,500 and $5,700 resistance levels.
After a successful close above the $5,000 level, the bitcoin price started a minor upward move. BTC/USD climbed above the $5,200 and $5,320 resistance levels.
Looking at the 1-hour chart, the price even climbed above the $5,400 level and the 25 simple moving average (1-hour, orange). However, the price seems to be facing a strong resistance near the $5,500 and $5,520 levels.
The market data is provided by TradingView, Bitfinex.
The bulls made a few attempts to gain strength above $5,500, but they failed. A high has been formed near $5,572 and the price is currently declining. It traded below the 23.6% Fib retracement level of the recent rise from the $4,467 low to the $5,572 high.
More importantly, the bitcoin price is currently attempting a downside break below a connecting trend line at $5,300 on the same chart.
If there is a proper break and BTC closes below $5,250, the bears are likely to aim at more downsides. The next support is at the $5,020 level. It represents the 50% Fib retracement level of the recent rise from the $4,467 low to the $5,572 high.
Intermediate support is near the $5,120 level. If the bulls fail to protect the $5,000 support, there are chances of a strong decline in the coming session towards $4,600.
On the other hand, Bitcoin could make another attempt to gain strength above the $5,500 and $5,520 resistance levels. A successful close above $5,500 and a follow-through above $5,572 may perhaps start a strong increase towards $5,980.