Bitcoin price has started a recovery wave above the $55,000 resistance level. BTC needs to break through the 100-hour SMA to continue its uptrend in the short term.
- Bitcoin recovered above the $53,500 and $55,500 levels.
- The price is trading below $58,000 and the 100 hourly simple moving average.
- A contracting triangle has emerged forming resistance at $57,500 on the hourly chart of the BTC/USD pair (data provided by Kraken).
- The pair may struggle to break above the $58,000 resistance zone.
Bitcoin price rises more than 85%
Bitcoin price formed a base and started a recovery wave above the $52,500 resistance zone. BTC was able to break above the $53,500 and $55,500 resistance levels.
There was a move above the 61.8% Fibonacci correction level of the downtrend from the $61,040 swing high to the $49,110 swing low. The bulls even managed to push the price above the $56,500 resistance zone. However, the bears may continue to play around $58,000.
Bitcoin price is still trading below $58,000 and the 100-hourly simple moving average. In an uptrend, the price may face resistance near $57,500. A contracting triangle is also forming with resistance at $57,500 on the hourly chart of the BTC/USD pair.
The first major resistance level is near the $58,250 level or the 76.4% Fibonacci retracement level of the downtrend from the $61,040 swing high to the $49,110 swing low.
If the resistance level of $58,250 is clearly surpassed, the price can move higher in the next session. The next major resistance level could be $59,200. The next major hurdle is $60,000. A close above the $60,000 resistance level could trigger a bullish move. In that case, the price could rise and test the $62,000 resistance level.
Bitcoin falling again?
If Bitcoin fails to recover above the $58,250 resistance zone, another downtrend could begin. Immediate support for the downtrend is near the $56,000 level.
The first major support is at $55,000. The next support is currently near $53,500. If there is further loss, the price could move towards the $52,000 support area in the short term.
Technical indicators:
Hourly MACD – MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Key support levels – $56,000, then $55,000.
Key resistance levels – $57,500 and $58,250.