Bitcoin price started a downward correction from the $ 54,900 zone against the US dollar. BTC is now consolidating and could usher in a new surge if it settles $ 54,900
- Bitcoin is showing positive signs above the USD 62,500 and USD 62,000 levels.
- The price is now trading well above the $ 62,000 level and the 100-hour simple moving average.
- A major contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 63,700.
- The pair is likely to start a new rally once it clears the main $ 64,000 resistance zone.
Bitcoin price holds profits
Bitcoin was trading at a new all-time high at $ 64,892 before a downward correction was initiated. BTC corrected below the USD 64,000 and USD 63,500 support levels.
There was a surge below the $ 62,000 support, but the 100-hour simple moving average acted as a support. The price is now trading well above the $ 62,000 level and the 100-hour simple moving average. It rebounded above the 50% fib retracement level of the recent decline from the $ 64,892 swing high to the $ 61,292 low.
Source: BTCUSD on TradingView.com
However, the bulls are now facing resistance near the $ 63,500 zone. A major contraction triangle is also forming on the hourly chart of the BTC / USD pair with resistance near USD 63,700.
The triangle resistance is near the 61.8% Fib retracement level of the recent decline from the $ 64,892 swing high to the $ 61,292 low. A successful break above the triangle resistance could trigger an upside break above the $ 64,000 level. In the case mentioned, the price could move to the level of $ 65,000. Further gains could require a move towards $ 66,500 and $ 66,800 in the short term.
Dips supported in BTC?
If Bitcoin doesn’t rise above $ 63,700 and $ 64,000, there could be another downward correction. Initial support on the downside is near the $ 62,500 level.
The main support is now forming near the USD 62,000 level and the triangle trendline. A downside break below the triangle trendline support could move the price further towards the key support area of $ 61,120 in the short term.
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now just above the 50 level.
Major support levels – $ 62,000 followed by $ 61,120.
Main Resistance Levels – $ 63,500, $ 63,700, and $ 64,000.