Bitcoin price found support near the $56,350 zone. BTC is recovering higher but the bears may be active near the USD 60,000 resistance zone.
- Bitcoin is trying to mount a recovery wave from the $56,350 support zone.
- The price is trading below $60,000 and the 100 hourly Simple Moving Average.
- There was a break above a key bearish trendline with resistance at $57,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to break the $60,000 and $60,500 resistance levels.
Bitcoin price faces resistance
Bitcoin price extended losses below the $60,000 level and entered a short-term bearish zone. BTC even traded below the USD 58,000 level before the bulls emerged near the USD 56,350 level.
A low was formed at $56,378 and the price started quite a recovery wave. The price climbed above the USD 58,000 resistance zone. There was a break above a key bearish trendline with resistance at $57,800 on the hourly chart of the BTC/USD pair.
The price climbed above the 23.6% Fib retracement level of the downwave from the $64,738 swing high to the $56,378 low. Bitcoin is still trading below $60,000 and the 100 hourly Simple Moving Average.
The immediate resistance is near the $60,000 level. The first major resistance could be at $60,500. It is close to the 50% Fib retracement level of the downward wave from the $64,738 swing high to the $56,378 low. The next major resistance could be at USD 61,500.
Source: BTCUSD on TradingView.com
A clear move above the USD 61,500 resistance could push the price higher. The next resistance is now at $63,400. If there is a clear move above the USD 63,400 resistance zone, the price could continue to rise. In the mentioned case, the price could increase to $65,000.
Rejection at BTC?
If Bitcoin fails to rise above the USD 60,500 resistance zone, it could trigger another decline. The immediate downside support is near the USD 58,500 level.
The first major support is at $57,800. If there is a close below $57,800, the price could start falling towards $56,350. Any further losses could send the price towards the $55,000 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 57,000, followed by USD 56,500.
Major resistance levels – $60,000, $60,500 and $61,500.
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