Bitcoin Could Dip Lower After Slipping Below $58k
The cryptocurrency market has been bearish since the start of the week, and several coins have lost more than 10% of their values.
Bitcoin Drops Below $58k
Bitcoin, the world’s leading cryptocurrency in terms of market cap, has been performing poorly since the start of the week. BTC was trading above the $65k at the start of the week, but it is now down by more than 15% over the past seven days.
At press time, BTC has dropped below the $58k level for the first time since October. The losses have extended into the broader cryptocurrency market, with the total market cap down from the high of $3 trillion to stay just above $2.6 trillion.
BTC Could Dip Lower
Bitcoin’s price could drop lower over the coming hours and days as the broader cryptocurrency market continues to be in a bearish trend. BTC’s MACD line is below the neutral zone, indicating that the bears are currently in control. Furthermore, the relative strength index of 39 shows that Bitcoin is in the oversold territory.
With the technical indicators all showing bearish signs, Bitcoin’s losses could grow bigger over the coming hours and days. If the current market trend is maintained, then BTC risks dropping below the $55k level for the first time in weeks.
An extended bearish performance could see Bitcoin struggle to defend the major support level above the $53k over the coming days. However, the bulls could regain control of the market again, and that would send Bitcoin’s price higher in the coming days.
In the event of a market recovery, Bitcoin’s price could surge past the $60k level over the coming hours. BTC could look to test the $64k resistance level in the event of an extended rally from the leading cryptocurrency.