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Bitcoin price started a recovery wave from the $55,600 zone. BTC is now struggling to overcome the USD 58,500 resistance and could fall again.
- Bitcoin is struggling to recover above the $58,500 zone.
- The price is trading below $58,200 and the 100 hourly Simple Moving Average.
- A connecting bullish trendline is forming with support at $57,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to recover above the $58,500 or $58,750 resistance levels in the near term.
Bitcoin price faces hurdles
Bitcoin price extended losses below the USD 57,200 support level. BTC even traded below the USD 57,000 support. A low was formed at $55,591 and the price recently started a recovery wave.
There was a move above the USD 56,500 and USD 57,000 resistance levels. It cleared the 50% Fib retracement level of the downward move from the $59,772 swing high to the $55,591 low. The price even reached the $58,000 level but faced sellers near $58,500.
Bitcoin is now trading below $58,200 and the 100 hourly Simple Moving Average. A connecting bullish trendline is also forming with support at $57,250 on the hourly chart of the BTC/USD pair.
On the upside, the price could encounter resistance near the USD 58,500 level. The first major resistance is near the $58,750 level or the 76.4% Fib retracement level of the downward move from the $59,772 swing high to the $55,591 low. A clear move above the USD 58,750 resistance could push the price further higher in the coming sessions.
The next major resistance could be at USD 59,500. A close above the $59,500 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 58,500 resistance zone, it could trigger another decline. The immediate downside support is near the $57,250 level and the trendline.
The first major support is at $56,850. The next support is now near the $56,200 zone. Any further losses could send the price towards the USD 55,500 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 approaching the 50 level.
Major support levels – USD 57,250, followed by USD 56,850.
Major resistance levels – $58,500 and $58,750.