The bitcoin price is currently consolidating around $57,500. If BTC can break above the $58,000 resistance level in the near term, it is expected to gain strong bullish momentum.
Recently, bitcoin started a recovery wave above USD 55,500 and USD 56,500.
The price is currently above $57,000 and the 100 hourly simple moving average.
Bitcoin has broken above a key bearish trend line with resistance at $56,850 on the hourly chart of the BTC/USD pair.
However, the pair might struggle to break out of the $58,250 resistance zone. A breakout of this critical area could see Bitcoin rise further and start a new uptrend.
Bitcoin prices could continue to rise
Bitcoin price started a recovery above the $53,500 resistance area. BTC was able to break the $55,500 and $56,500 resistance levels to move into a short term positive zone.
The price broke the 61.8% Fibonacci retracement level of the key decline from the $61,040 high to $49,110 low. Moreover, there was a break above a key bearish trend line with resistance at $56,850 on the hourly chart of the BTC/USD pair.
The bulls are currently attempting to break above $57,500. Bitcoin price is currently trading above $57,000 and the 100 hourly simple moving average. On the upside, the price is likely to face resistance near $58,250. It is close to the 76.4% Fibonacci retracement level of the key decline from the $61,040 swing high to $49,110 swing low.
The first key resistance is near $58,800. If there is a clear break above the $58,800 resistance, the price could rise further in the coming sessions. The next key resistance could be $59,500. The next major resistance is $60,000. A close above the $60,000 resistance could spark a bullish move. In such a case, the price could rise and test the $62,000 resistance.
BTC drops again?
If bitcoin fails to clear the $58,250 resistance, it could decline again. On the downside, an immediate support is near $56,400 and the 100 hourly SMA.
The first major support is at $54,500. The next support is currently near $53,500. If the price declines further, it could drop to the $52,000 support area in the near term.
Technical indicators:
Hourly MACD – The MACD is currently accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
The main support level – $56,400, followed by $54,500.
Major Resistance Levels – $58,250 and $58,800.
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