Bitcoin price started a decent rise above the USD 55,500 resistance. BTC is consolidating and could target more gains if it clears the USD 58,000 resistance.
- Bitcoin rises from the USD 52,500 support zone.
- The price is trading above USD 55,500 and the 100 hourly Simple Moving Average.
- There was a break above a key bearish trendline with resistance at $55,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is facing near-term resistance near the $58,000 and $58,200 resistance levels.
Bitcoin Price Begins Recovery
Bitcoin price started to rise significantly after breaking the USD 55,500 resistance zone. BTC gained speed and was able to clear the USD 56,200 resistance. There was a break above a key bearish trendline with resistance at $55,300 on the hourly chart of the BTC/USD pair.
The pair even peaked above the $58,000 resistance zone. It reached a high at $58,050 and the price is now consolidating gains. There was a small decline below the USD 57,500 level. The price fell below the 23.6% Fib retracement level of the upward move from the $52,569 swing low to the $58,050 high.
Bitcoin is now trading above $55,500 and the 100 hourly Simple Moving Average. On the upside, the price could encounter resistance near the USD 57,500 level. The first major resistance is around the $58,000 level.
A clear move above the USD 58,000 resistance could push the price further higher in the coming sessions. The next major resistance could be at USD 58,500. A close above the $58,500 resistance could provide more upside. In the mentioned case, the price could rise and test the USD 60,000 resistance.
Another drop in BTC?
If Bitcoin fails to rise above the USD 58,000 resistance zone, it could trigger another decline. The immediate downside support is near the USD 56,750 level.
The first major support is $55,500 or the 50% Fib retracement level of the upward move from the $52,569 swing low to the $58,050 high. The next support is now near the $53,500 zone. Any further losses could send the price towards the USD 52,600 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 56,750, followed by USD 55,500.
Major resistance levels – $57,500 and $58,000.
