Bitcoin price started a modest increase above the $ 56,000 resistance against the US dollar.
Bitcoin price began a modest increase above the $ 56,000 resistance against the US dollar. BTC is showing positive signals and could target a breakout above $ 58,000. According to the technical analysis of NewsBTC’s Aayush Jindal:
Bitcoin formed a support of over $ 54,000 and recovered above the $ 56,000 zone.
The price is currently trading above the $ 56,000 level and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $ 54,850 on the hourly chart of the BTC / USD pair (based on Kraken data).
The pair traded as high as $ 57,994 and is currently correcting its gains.
Bitcoin (BTC) Price Shows Positive Signals
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Bitcoin continued to trade above the $ 54,000 support zone. As a result, BTC started a new rise above the $ 55,500 and $ 56,000 resistance levels.
There was a clear break above a major bearish trend line with resistance near $ 54,850 on the hourly chart of the BTC / USD pair. The pair even climbed above the $ 57,000 level and settled nicely above the 100 hourly simple moving average.
It tested the $ 58,000 resistance zone and a high was formed near $ 57,994. The price is currently falling and trading below $ 57,500. It is testing the 23.6% Fib retracement level of the last wave from $ 52,927 to $ 57,994.
There is a bearish channel or bullish flag formed on the same chart with support near $ 56,600. The 100-hour simple moving average is also close to channel support.
On the upside, the price is facing resistance near the $ 57,600 channel trend line. If there is an upside break above the trendline resistance, Bitcoin price could clear the $ 58,000 resistance. The next major resistance is near the $ 60,000 level.
Will Bitcoin (BTC) Fall?
If Bitcoin fails to clear the $ 57,600 resistance or $ 58,000, it could initiate a new decline. Initial support on the downside is near the $ 56,600 level and the channel zone.
The first major support is near the $ 56,250 level where the price can test $ 55,500. This is near the 50% Fib retracement level of the last wave from $ 52,957 to $ 57,994.
Hourly MACD – The MACD is showing positive signs and may rise in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently well above the 50 level.
Major Support Levels – $ 56,600 followed by $ 55,500.
Major Resistance Levels – $ 57,600, $ 58,000 and $ 60,000