Bitcoin price began a downward correction due to the $ 60,000 resistance against the US dollar. BTC is now approaching a large support zone near USD 56,200 and USD 56,000.
- Bitcoin made a short-term high near $ 60,000 and started a downward correction.
- The price is now trading near the USD 57,000 support and the 100-hour simple moving average.
- A major rising channel is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 56,150.
- The pair should continue to rise as long as there is no downside break below the USD 56,000 support.
Bitcoin price is losing momentum
Bitcoin saw an upward extension above the USD 59,500 level. BTC even climbed to the $ 60,000 level before the bears took a stand. A high will be formed near $ 60,040 before breaking down.
There was a pause below the $ 58,500 and $ 58,000 support levels. The price fell below the 23.6% fib retracement level of the upside move from the $ 53,761 low to the $ 60,040 high. It is now trading near the USD 57,000 support and the 100-hour simple moving average.
Source: BTCUSD on TradingView.com
The bulls are defending the 50% Fib retracement level of the move up from the $ 53,761 low to the $ 60,040 high. A major upside channel is also forming on the hourly chart for the BTC / USD pair with support near USD 56,150.
If there is a downside break below the USD 56,200 and USD 56,000 support levels, there is a risk of a sharp decline. In the case mentioned, the price should fall towards USD 53,500 in the short term. Intermediate support could be near the $ 55,000 level.
New rise in BTC?
If Bitcoin stays above the USD 56,200 and USD 56,000 support levels, it could cause another spike. Initial resistance to the upside is near the $ 58,500 level.
A sharp break above the $ 58,500 level could potentially push the price towards the $ 60,000 resistance zone. Further gains should set the tone for a move towards $ 61,500 or even a new all-time high in the coming days.
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now below the 50 level.
Major Support Levels – $ 57,000, followed by $ 56,000.
Main Resistance Levels – $ 58,500, $ 60,000, and $ 61,500.