Bitcoin Dips Lower, But If Support Holds, It Could Be A Good Thing

Bitcoin BTC/USD is trading lower Tuesday morning in a cryptocurrency market that is down overall. Although Bitcoin is down, it looks to have bounced off support Tuesday morning.

Bitcoin was down 4.69% to $60,642.08 at press time.

See Also: Coinbase Shares Struggle As Bitcoin, Ethereum Take A Dive: What's Next?

Bitcoin Daily Chart Analysis

• Bitcoin recently broke above resistance in what technical traders call a sideways channel and is now looking to test old resistance as support.
• The $60,000 level is an area where Bitcoin had troubles crossing above in the past, but as it has finally gotten above the level it may now hold as support. If unable to hold as support, the next strong level of support for Bitcoin may be around the $45,000 level.
• The cryptocurrency is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the cryptocurrency is trading with bullish sentiment.
• Each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) dipped lower the past couple of days and now sits at 46 on the indicator. This shows that the selling pressure has been greater than the buying pressure recently.

What’s Next For Bitcoin?

Bullish traders want to see Bitcoin be able to hold above the $60,000 level. This will show the area still holds as a strong support line and could hint the coin is ready to continue to push higher.

Bearish traders want to see Bitcoin unable to hold above the $60,000 level and begin to hold it as a place of resistance once again. This may let the crypto see a bearish push back toward the $45,000 level.