Bitcoin price rose again against the US dollar above the USD 56,500 resistance zone. BTC is now approaching a major hiatus with a major hurdle near $ 60,000.
- Bitcoin is showing positive signs above the $ 56,500 and $ 58,000 resistance levels.
- The price is now trading well above $ 58,000 and the simple moving average of 100 (4 hours).
- A large contraction triangle is forming on the 4-hour chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 60,000.
- The pair is likely to accelerate higher once it clears the USD 60,000 resistance zone in the near future.
Bitcoin price turns green
For the past week, Bitcoin price was above the all-important pivot level of $ 55,000 against the US dollar. The BTC / USD pair formed a base above USD 55,000 and recently started a new spike.
It climbed above the $ 56,500 resistance zone and was well above the simple moving average of 100 (4 hours). However, given Ethereum’s recent surge above $ 3,500, the upside has been limited.
BTC erased the USD 58,000 resistance and even topped the USD 59,000 level. A high is formed near $ 59,566 before the price began a bearish correction. It is now trading below the $ 59,000 level. There was a break below the Fib retracement level of 23.6% of the move up from the low of $ 56,859 to the high of $ 59,566.
Source: BTCUSD on TradingView.com
On the other hand, big support is forming near the $ 58,000 zone. The 50% 23.6% Fib retracement level of the move up from the $ 56,859 low to the $ 59,566 high is also near the $ 58,200 zone.
On the upside, initial resistance is near the $ 59,500 level. The main hurdle is near the $ 60,000 level. A large contraction triangle is also forming on the 4-hour chart of the BTC / USD pair with resistance near USD 60,000. A successful close above the USD 59,500 and USD 60,000 resistance levels could open the doors to a strong rally in the upcoming sessions.
Dips Limited in BTC?
If Bitcoin defaults above the $ 60,000 level, there is a risk of a downward correction. The first major support is near the USD 58,200 level and the triangle trendline zone.
The next major support is near the $ 57,200 level. Further losses could require a further drop to the $ 55,500 support level.
4 hours MACD – The MACD for BTC / USD is gaining momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI for BTC / USD is now well above the 50 level.
Main tier of support – $ 58,000
Main Resistance Level – $ 60,000