Bitcoin price started a fresh increase above the $56,500 resistance zone against the US Dollar. BTC is now approaching a major break, 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 100 simple moving average (4-hours).
- There is a major contracting triangle forming with resistance near $60,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to accelerate higher once it clears the $60,000 resistance zone in the near term.
Bitcoin Price Turns Green
This past week, bitcoin price settled above the key $55,000 pivot level against the US Dollar. The BTC/USD pair formed a base above $55,000 and recently started a fresh increase.
It climbed above the $56,500 resistance zone and settled well above the 100 simple moving average (4-hours). However, the upward move was limited, considering the recent surge in ethereum above $3,500.
BTC cleared the $58,000 resistance and it even spiked above the $59,000 level. A high is formed near $59,566 before the price started a downside correction. It is now trading below the $59,000 level. There was a break below the 23.6% Fib retracement level of the upward move from the $56,859 swing low to $59,566 high.
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On the downside, there is a major support forming near the $58,000 zone. The 50% 23.6% Fib retracement level of the upward move from the $56,859 swing low to $59,566 high is also near the $58,200 zone.
On the upside, an initial resistance is near the $59,500 level. The main hurdle is near the $60,000 level. There is also a major contracting triangle forming with resistance near $60,000 on the 4-hours chart of the BTC/USD pair. A successful close above the $59,500 and $60,000 resistance levels could open the doors for a strong rally in the coming sessions.
Dips Limited in BTC?
If bitcoin fails above the $60,000 level, there is a risk of a downside correction. The first major support is near the $58,200 level and the triangle trend line zone.
The next major support is near the $57,200 level. Any more losses might call for a fresh drop towards the $55,500 support level.
Technical indicators
4 hours MACD – The MACD for BTC/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $58,000
Major Resistance Level – $60,000
