Can Bitcoin Overcome the $56K Resistance Level?

• Bitcoin price declined by over 12% in the last 7 days.
• BTC’s daily RSI at 30.36 underscores the asset’s current oversold condition.

Bitcoin (BTC), the largest cryptocurrency by market cap, has continued to display its dismal price trends ever since the start of July. Following BTC’s price dip, the global crypto market shed over a hundred billion dollars, returning it to $2.05 trillion.

Notably, over the last 24 hours, Bitcoin formed a low near $54,260 after observing a decline of 3.35%. The price seems to have entered a phase of consolidating losses. The decline and selling pressure were observed after Mt. Gox’s repayments began.

Meanwhile, the Bitcoin market shows mixed performance with large holders such as the German Government selling, while retail investors show interest in the Bitcoin ETFs. Renowned economist Peter Schiff commented on the current trading patterns and ETF inflows of Bitcoin on Sunday.

“Based on the trading patterns and ETF inflows, it looks like the smart money is selling Bitcoin in the spot market while the dumb money is buying it through ETFs. Congratulations to the Bitcoin whales for pulling this off. They set up BitcoinETF investors to be the bag holders.”

At the press time, BTC traded at $55,620, with a market cap of $1 trillion. Meanwhile, the daily trading volume recorded a 30.58% increase and stood at $26 billion, according to CMC data.

Can BTC Bulls Defeat the Bears Shortly?

At the beginning of July, Bitcoin sat at the $63,000 range, bringing in slight anticipation for relief from late June bears. Conversely, bears took over the trend and pulled it down to $53K within three days. The 12% decline over the past week did succeed in spiking the anxiety. Currently, the BTC’s fear and greed index was noted at 29.80, highlighting intense fear in the market.

BTC Price Chart (Source: TradingView)

Meanwhile, the daily RSI, which stands at 30.36, points out that the asset is in the oversold zone. The short-term 9-day moving average (9MA) is found below the 21-day moving average (21MA), indicating the current bearish trend.

If Bitcoin bulls reconquer the bears, the BTC price might find its key resistance range at $55,879. And the next major resistance level will be found at $56,118. Contrarily, if the bears continue ruling the momentum, BTC could drop below $55K and find support within $54K-$55.2K.

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