Bitcoin began a downward correction from the $ 57,800 zone against the US dollar. BTC needs to stay above the 100 hour SMA to start a new spike in the short term.
- Bitcoin corrected below the $ 57,000 pivot level.
- The price is now trading above $ 56,000 and the 100-hour simple moving average.
- A large bullish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 55,200.
- The pair could start a fresh spike if it breaks the USD 57,000 resistance zone.
Bitcoin price is still supported
Bitcoin price has extended its surge above the $ 57,000 pivot level. BTC even broke the $ 57,500 mark and settled above the 100-hour average.
However, the price struggled to extend gains above the $ 58,000 level. It traded as high as $ 57,837 and was recently revised downwards. There was a break below the $ 57,000 mark. The price even climbed below the $ 56,000 and 100-hour SMA mark.
Bitcoin found support near $ 54,019 and recently started an upward move. It climbed above the $ 55,000 mark. There was a break above the 50% fib retracement level of the recent decline from the $ 57,837 swing high to the $ 54,019 low.
It is now trading above $ 56,000 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 55,200.
On the flip side, the bulls are facing resistance near the $ 56,350 mark. It is near the 61.8% Fib retracement level of the recent decline from the high of $ 57,837 to the low of $ 54,019. The first major resistance is near the $ 57,000 mark, followed by a bearish trendline on the same chart.
Source: BTCUSD on TradingView.com
A significant break above the USD 57,000 resistance could open the doors for another move higher. The next major resistance is near the $ 58,000 mark.
Dips supported in BTC?
If Bitcoin fails to break the USD 57,000 resistance zone, it could correct downward again. Immediate support on the downside is near the $ 56,000 mark.
The first major support is now forming near the $ 55,900 mark and the 100 hour SMA. A downside break below the 100-hour SMA could push the price towards the USD 54,000 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 mark.
Major support levels – $ 56,000 followed by $ 55,900.
Main Resistance Levels – $ 56,350, $ 57,000, and $ 58,000.