Bitcoin price started a decent increase above the $55,500 resistance. BTC is consolidating and could seek more gains if it clears the $58,000 resistance.
- Bitcoin is rising from the $52,500 support zone.
- The price is trading above $55,500 and the 100 hourly simple moving average.
- There was a break above a descending trend line with resistance at $55,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is facing resistance near the $58,000 and $58,200 resistance levels in the near term.
Bitcoin Price Begins Recovery
Bitcoin price started a decent rise after breaking the $55,500 resistance zone. BTC picked up pace and managed to overcome the resistance at $56,200. There was a break above a descending trend line with resistance at $55,300 on the hourly chart of the BTC/USD pair.
The pair even climbed above the $58,000 resistance zone. A high was formed at $58,050 and the price is now consolidating gains. There was a minor decline below the $57,500 level. The price fell below the 23.6% Fib retracement level of the upward move from the $52,569 swing low to $58,050 high.
Bitcoin is now trading above $55,500 and the 100-hour simple moving average. On the upside, the price may face resistance near the $57,500 level. The first key resistance is near the $58,000 level.
A clear move above the $58,000 resistance could push the price higher in the coming sessions. The next key resistance could be at $58,500. A close above the $58,500 resistance could provide further upside. In this case, the price could move higher and test the $60,000 resistance.
Another BTC decline?
If Bitcoin fails to climb above the $58,000 resistance zone, it could start another decline. Immediate support on the downside is near the $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 $58,050 high. The next support is now near the $53,500 zone. Any more losses could send the price towards the $52,600 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $56,750, followed by $55,500.
Key Resistance Levels – $57,500 and $58,000.