Bitcoin price extended its decline below the $54,000 level against the US Dollar.
There was also a close below the $54,000 level and the 100 hourly simple moving average.
There was a break above the 23.6% Fib retracement level of the downward move from the $56,545 swing high to $52,375 low.
There is also a major declining channel forming with resistance near $54,000 on the hourly chart of the BTC/USD pair.
A successful break above the channel resistance and then a break above the $54,500 level could set the pace for a fresh increase towards the $56,500 level.
If bitcoin fails to clear the $54,000 resistance and the 100 hourly SMA, there is a risk of more downsides.
A proper break and close below the $52,500 level is likely to set the pace for another 5% decline.
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