Bitcoin Extends Decline, Here’s Why BTC Remains At Risk Below $56K

Bitcoin price extended its decline and tested the $53,000 zone against the US Dollar. BTC is correcting higher, but it is facing a lot of hurdles near $55,000 and $56,000.

Bitcoin remained in a short-term bearish zone and it extended its decline to $53,000.
The price is now trading well below the $56,000 level and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $55,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but it is likely to struggle near $56,000 and $56,500.

Bitcoin Price is Facing Hurdles
Bitcoin failed to recover above the $57,000 barrier and it extended its decline. BTC traded below the $54,000 support zone and it even declined below $53,200.
There was a spike below $53,000 and the price traded as low as $52,943. It is now correcting higher and trading above the $54,000 level. There was a break above the 23.6% Fib retracement level of the recent drop from the $59,040 swing high to $52,943 low.
It is now trading well below the $56,000 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $55,200 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com
If there is an upside break above the trend line resistance, it could correct higher towards the $55,500 resistance zone. The 50% Fib retracement level of the recent drop from the $59,040 swing high to $52,943 low is also near the $55,600 level.
The next key resistance is near the $56,000 level. A close above the $56,000 level might increase the chances of a steady increase above the 100 hourly simple moving average.
More Losses in BTC?
If bitcoin fails to clear the $55,500 resistance or $56,000, it could start a fresh decline. An initial support on the downside is near the $54,200 level.
The first key support is near the $53,400 level, below which the price might revisit the $52,943 low. Any more losses could open the doors for a drop towards the $52,000 support zone.
Technical indicators:
Hourly MACD – The MACD is struggling to gain pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is recovering towards the 50 level.
Major Support Levels – $54,200, followed $53,000.
Major Resistance Levels – $55,500, $56,000 and $58,500.