BTC/USD is currently trading at $58,190, down 1.20% over the last 24 hours, with a daily trading volume of $15.6 billion. However, despite its recent price declines, Bitcoin (Bitcoin-BTC) remained at the top of the cryptocurrency ranking with a market capitalization of $1.15 trillion.
With the Puell Multiple Index for BTC indicating a potential buying opportunity now, traders are watching for any signs of buying time to come.
$59,420 resistance barrier hampers Bitcoin price movements according to technical analysis
Looking at the two-hour chart, the price of Bitcoin is moving within a descending trading channel, currently testing the $59,420 resistance line along the 50-day Exponential Moving Average (EMA-50) line. So, this drawback is very important, if the price of Bitcoin fails to break through the $59,420 level and stabilize above, it could face increased selling pressure to push it lower.
On the other hand, the RSI reading points to 42.71, indicating bearish momentum without reaching a hyper-selling zone, so the price of Bitcoin may see a further decline before any strong reversal of the current downtrend occurs.
Possible scenarios: a breakout to the top or a wave of pullbacks?
If Bitcoin’s price fails to break through the $59,420 resistance line, we could see further pullbacks to test the important support level that previously provided strong support at $57,724.
If BTC manages to break the $59,420 resistance level, it could signal the end of the current downward trajectory, paving the way for a possible rally and testing the next resistance level at $60,794.
Therefore, traders should keep a close eye on the $59,420 resistance and $57,724 support, as they are likely to determine the direction of Bitcoin’s price in the foreseeable future, as a breakout of the $59,420 level could continue the upward trajectory, while failure to break it could push the BTC price to test subsequent support levels.
Read also :Dollar stabilizes but near two-week highs against euro
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