Will Bitcoin be able to surpass the 56K resistance level

Bitcoin has experienced a significant drop of more than 12% in the past week.
The daily Relative Strength Index (RSI) for BTC is currently at 30.36, indicating that the asset is oversold.
Since the beginning of July, Bitcoin, the largest cryptocurrency by market capitalization, has been showing a downward trend in its price. This decline in BTC’s price has caused the global crypto market to lose over a hundred billion dollars, bringing it back to $2.05 trillion.
In the last 24 hours, Bitcoin saw a low near $54,260 after a 3.35% decline. It appears that the price is now consolidating losses. This drop in price and selling pressure occurred following the start of repayments by Mt. Gox.
The Bitcoin market is currently showing a mixed performance, with major holders like the German Government selling off, while retail investors are showing interest in Bitcoin ETFs. Noted economist Peter Schiff shared his thoughts on the trading patterns and ETF inflows of Bitcoin on Sunday.
According to Schiff, “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 Bitcoin ETF investors to be the bag holders.”
As of now, BTC is trading at $55,620, with a market capitalization of $1 trillion. The daily trading volume has increased by 30.58% and is currently at $26 billion, as per CMC data.
Can Bitcoin Bulls Overcome the Bears Soon?
At the start of July, Bitcoin was hovering around the $63,000 mark, raising hopes for relief from the bearish trend of late June. However, bears took control and brought the price down to $53K within three days. The 12% drop in the past week has heightened anxiety among investors. The fear and greed index for BTC is currently at 29.80, indicating high fear in the market.
Meanwhile, the daily RSI is at 30.36, showing that the asset is oversold. The short-term 9-day moving average (9MA) is below the 21-day moving average (21MA), signaling a bearish trend.
If Bitcoin bulls manage to regain control, the price could face resistance at $55,879 and then at $56,118. Conversely, if bears continue to dominate, BTC might drop below $55K and find support in the range of $54K-$55.2K.
In other crypto news, a significant whale transfer of PENDLE worth 3 million has increased selling pressure on the asset.