Bitcoin (BTC) 60K Resistance Looms as Analysts Eye Potential $50K Retest

Bitcoin (BTC) has faced a sudden downturn, retracing to a critical breakout level of approximately $57.7k, following a period of relative stability.

Bitcoin (BTC) price encountered a sudden downturn on March 22, retracing to a critical breakout level after a period of relative stability. Despite growth in the stock market and a largely unmoved U.S. Dollar Index, BTC failed to capitalize on these developments.

Bitcoin price dropped sharply on March 22, potentially signaling further downside.

After failing to follow through on bullish market sentiment and favorable macroeconomic indicators, Bitcoin price experienced a sudden downturn on March 22.

According to Zen, a crypto market analyst, this retracement could hint at further downside potential, with Bitcoin possibly revisiting lower price levels in the coming days.

“Stocks grown, Dollar Index didn’t move, but Bitcoin ignored all that and just collapsed back to breakout level at ~57.7k. Frankly I expected BTC to grow a bit further before dump. So what we have now… last week long buy tail still act as a magnet for… https://t.co/RTsEUPNuoc pic.twitter.com/ZyMnlfMQFV

— Zen (@Zeneca_33) March 22, 2023″

Bitcoin price faces potential support and resistance levels.

Zen’s analysis highlights the likelihood of Bitcoin testing the long buy tail from last week, which remains a magnet for the price. This potential downside could see Bitcoin targeting a zone around $53.5k to $54.6k.

Furthermore, a Fair Value Gap exists at $56k, while a developing Yearly Volume Area Low (VAL) sits further down at approximately $50.3k. These levels might come into play if the bearish momentum persists, potentially leading to a revisit of these price zones either this week or next.

Bitcoin price still encounters resistance despite the recent downturn.

On the upside, Bitcoin faces resistance before any consideration of a bullish reversal. The main resistance zone lies near the developing Yearly Volume Weighted Average Price at $59.5k, with a critical level above $61k.

So far, attempts to breach these levels have been met with rejections, indicating that bulls have yet to regain control.

Bitcoin price attempts to establish a clearer trend.

At press time, Bitcoin price trades at $59,763.83, showing a 0.43% increase over the past day and a 0.5% gain in the last week. Despite minor gains, the broader trend suggests that BTC could face additional challenges before establishing a clearer direction.