Bitcoin price found support near $56,350. BTC is recovering higher, but bears may remain active near the $60,000 resistance zone.
- Bitcoin is attempting a recovery from the $56,350 support zone.
- The price is trading below $60,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a breakout occurred above the main bearish trendline with resistance at $57,800.
- The pair may have difficulty breaking the resistance levels of $60,000 and $60,500.
Bitcoin price faces resistance
Bitcoin price extended losses below the $60,000 level and entered near-term bearish territory. BTC also traded below the $58,000 level before bulls emerged near the $56,350 level.
A low was made at $56,378 and the price began a significant recovery. The price broke above the $58,000 resistance level. On the hourly chart of the BTC/USD pair, a major bearish trend line has been broken above the resistance level of $57,800.
Prices crossed the 23.6% Fib retracement level of the bearish wave from the $64,738 swing high to the $56,378 low. Bitcoin is still trading below $60,000 and the 100-hour simple moving average.
Immediate resistance is near the $60,000 level. The first major resistance could be $60,500. The swing high of $64,738 to the low of $56,378 is close to the 50% Fib retracement level of the bearish wave. The next major resistance could be $61,500.
Source: TradingView.com BTCUSD
A clear break above the $61,500 resistance could push the price higher. The next resistance level is currently at $63,400. If there is a clear move above the $63,400 resistance zone, the price may continue to rise. If specified, the price could go as high as $65,000.
Rejected by BTC?
If Bitcoin fails to rise above the $60,500 resistance zone, another decline could begin. Immediate support for the downside is near the $58,500 level.
The first major support is $57,800. If the closing price falls below $57,800, the price may start to fall towards $56,350. More losses could push the price towards the $55,000 support area in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $57,000, then $56,500.
Key resistance levels – $60,000, $60,500, $61,500.
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