Bitcoin rose to a high of $59,238 in the early morning before falling to a low of $54,382 in the late morning.
Bitcoin fell through the first major support level at $57,581 and the second major support level at $56,146 during the morning sell-off.
While retreating to sub-$55,000 levels, Bitcoin avoided the third key support level at $53,789, paving the way for a return to $54,500 levels.
Bitcoin will break back through the main support levels and the pivot level of $58,502 in the afternoon, bringing the first big resistance level of $59,937 into play.
Bitcoin would require support from the wider market to break clear of this morning’s highs of $59,238 and $59,500.
The first significant resistance level, barring a protracted rally, should cap the gains.
Before any decline, Bitcoin might attempt resistance above $60,000 in the case of a broad-based crypto resurgence. At $60,859, the second significant resistance level is found.
However, if the main support levels are not retested, the third major support level at $53,789 will be tested.
However, unless there is a sustained sell-off during the afternoon, Bitcoin should remain over $53,000. The downside should be limited by the 23.6 percent FIB of $53,628.
We had a bearish cross this morning with the 50 EMA crossing back through the 100 EMA, looking beyond the support and resistance lines. The 100 EMA’s drop from the 200 EMA further added to the negative pressure.
Sub-$54,000 levels might be reached if the 50 EMA pulls back from the 100 EMA.
A rebound to $58,000 would be critical for the bulls to prevent a day-long sell-off