Bitcoin price gained momentum and was above the $ 57,000 level against the US dollar. BTC is likely to break the $ 58,500 resistance and start a strong rally.
- Bitcoin rose steadily and broke the resistance zone of $ 56,500.
- The price is now trading well above the $ 56,000 level and the 100 hour simple moving average.
- A major bullish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 56,800.
- The pair could start a strong rally if it clears the $ 58,500 resistance zone in the short term.
The Bitcoin price is picking up the pace
Bitcoin failed to remove the $ 58,500 resistance and corrected lower. BTC traded below the $ 57,000 level but remained well above the 100-hour simple moving average.
A low was formed near $ 56,112 and the price recently started rising again. There was a pause above the $ 56,500 and $ 57,000 resistance levels. Bitcoin climbed above the 50% Fib retracement level of the downward move from the $ 58,550 swing high to the $ 56,112 low.
It is now trading well above the $ 56,000 level and the 100 hour simple moving average. A major bullish trendline is also forming on the hourly chart of the BTC / USD pair with support near USD 56,800.
Source: BTCUSD on TradingView.com
The pair is now consolidating just above the 76.4% fib retracement level of the downward move from the $ 58,550 swing high to the $ 56,112 low. The first major resistance to the upside is near the $ 58,500 level. A successful break above $ 58,500 could set the pace for a strong rally. In the given case, the first target for the bulls could be $ 60,000. The next key stop for them could potentially be $ 62,000.
Dips Limited in BTC?
If Bitcoin fails to offset the $ 58,500 resistance, it could correct a lower value again. Initial downside support is near the USD 57,500 level.
The first major support is near the USD 57,000 level and the trend line. A downside break below the trendline could require a test of the USD 56,000 support and the 100 hour simple moving average.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is well above the 50 level.
Major Support Levels – $ 57,500, followed by $ 57,000.
Main Resistance Levels – $ 58,500, $ 60,000, and $ 62,000.