Bitcoin price rebounded, surpassing the $ 56,550 resistance zone against the US dollar. BTC is likely to rebound if there is a close above $ 58,000 and the 100-hour SMA.
- Bitcoin stayed strong over $ 54,000 and rose above $ 56,550
- The price is now facing resistance against the $ 57,500 level and the 100 hour simple moving average.
- On the hourly chart of the BTC / USD pair (data feed from Kraken) there was a break above a major bearish trendline with resistance near USD 56,800.
- The pair could see a sharp rise if there was a close above $ 58,000 and the 100-hour SMA.
Bitcoin price makes up for losses
Bitcoin fell sharply after failing to test the $ 60,000 resistance. BTC has broken the USD 57,500 and USD 55,500 support levels. However, it found support near $ 53,500 and recently started a new spike.
There has been a decent recovery wave above the $ 55,000 and $ 56,000 levels. The price cleared the 50% Fib retracement level of the major decline from the $ 59,500 swing high to the $ 53,460 swing low. There was also a break above a major bearish trendline with resistance near USD 56,800 on the hourly chart of the BTC / USD pair.
The pair is now facing resistance to the $ 57,500 level and the 100 hour simple moving average. It also remains near the 61.8% fib retracement level of the key drop from $ 59,500 to $ 53,460.
Source: BTCUSD on TradingView.com
To start a sharp surge, Bitcoin will have to cross the $ 57,500 barrier and 100-hour SMA. The next immediate resistance is at $ 58,000, above which the price could rise towards $ 59,500. The main resistance is still near the $ 60,000 zone.
Fresh drop of BTC?
If Bitcoin fails to remove the $ 57,500 or $ 58,000 resistance, it could cause another drop. Initial support on the downside is near the $ 56,500 level.
A downside break below the USD 56,500 support zone could move the price towards the USD 54,850 pivot level. Further losses could require a new test of the USD 53,500 support zone in the short term.
Hourly MACD – The MACD is slowly picking up pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now above the 50 level.
Major support levels – $ 56,500 followed by $ 54,850.
Main Resistance Levels – $ 57,500, $ 58,000, and $ 59,500.