Bitcoin price started a consolidation phase near the USD 58,500 level. BTC needs to clear the USD 60,500 resistance to trigger a near-term recovery wave.
- Bitcoin tested the $58,000 zone before making a small recovery.
- The price is trading below $62,000 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $60,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could slip again if there is no move above the $60,500 resistance.
Bitcoin Price Begins Consolidation
Bitcoin price gained bearish momentum below the USD 62,500 level. The price even dipped below the $60,000 level. Finally, the bulls appeared near the USD 58,000 level.
A low was formed at $58,009 and the price is now consolidating losses. There was a small recovery wave above the USD 58,500 and USD 58,800 levels. The price tested the 23.6% Fib retracement level of the downward wave from the $65,070 swing high to the $58,009 low.
Bitcoin is now trading below $61,200 and the 100 hourly Simple Moving Average. On the upside, the price could encounter resistance around the $59,650 level. The first major resistance is around the $60,000 level. There is also a major bearish trendline forming with resistance at $60,200 on the hourly chart of the BTC/USD pair.
A clear move above the USD 60,200 resistance could push the price further higher in the coming sessions. The next major resistance could be at USD 61,500. It is close to the 50% Fib retracement level of the downward wave from the $65,070 swing high to the $58,009 low.
A close above the $61,500 resistance could provide more upside. In the mentioned case, the price could rise and test the USD 62,500 resistance.
More disadvantages of BTC?
If Bitcoin fails to rise above the USD 60,200 resistance zone, it could continue to decline. The immediate downside support is near the USD 58,550 level.
The first major support is $58,000. The next support is now near the $57,650 zone. Any further losses could send the price towards the USD 56,500 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 58,550, followed by USD 58,000.
Major resistance levels – $60,200 and $61,500.
