Crypto analysis: BTC 4 hour chart analysis (9/5/024)

 Crypto chart analysis: (BTC)

BTC recovered from its steep decline on September 4 when the price slipped to a monthly low of $55,606. BTC erased 1.57% of its value on the day. 

 

Bitcoin faced a decline after testing its 50% price retracement level at $59,560. On Tuesday, its value dropped by 2.78%. The next day, Bitcoin found support at $56,022 and bounced back, ending the day close to $58,000. Despite this recovery, Bitcoin's price fell again by 2.15% to $56,725 on Thursday.

If Bitcoin continues to fall and closes below the daily support level of $56,022, it might drop further by 3.5%, potentially reaching the psychological level of $54,000. This is a critical support level that traders are closely watching.

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Momentum indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are both below their neutral levels. The RSI is below 50 and the AO is below zero, indicating weak momentum and suggesting that Bitcoin's downward trend might continue.

However, there's a possibility for a positive shift. If Bitcoin's price breaks above the resistance level of $59,560 and closes above $62,019, the bearish outlook would be invalidated. In this case, Bitcoin could rise by 5.5% to reach its next resistance level at $65,379.