Credit: Original article published by newsbtc.

Bitcoin price gained momentum and settled above the $57,000 level against the US Dollar. BTC is likely to break the $58,500 resistance and start a strong rally.

  • Bitcoin started a steady increase and it broke the $56,500 resistance zone.
  • The price is now trading well above the $56,000 level and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $56,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a strong rally if it clears the $58,500 resistance zone in the near term.

Bitcoin Price is Gaining Pace

Bitcoin failed to clear the $58,500 resistance and corrected lower. BTC traded below the $57,000 level, but it remained well above the 100 hourly simple moving average.

A low was formed near $56,112 and the price recently started a fresh increase. There was a break above the $56,500 and $57,000 resistance levels. Bitcoin climbed above the 50% Fib retracement level of the downward move from the $58,550 swing high to $56,112 low.

It is now trading well above the $56,000 level and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $56,800 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The pair is now consolidating just above the 76.4% Fib retracement level of the downward move from the $58,550 swing high to $56,112 low. The first major resistance on the upside is near the $58,500 level. A successful break above the $58,500 could set the pace for a strong rally. In the stated case, the first target for the bulls could be $60,000. The next key stop for them may possibly be $62,000.

Dips Limited in BTC?

If bitcoin fails to clear the $58,500 resistance, it could correct lower once again. An initial support on the downside is near the $57,500 level.

The first key support is near the $57,000 level and the trend line. A downside break below the trend line might call for a test of the $56,000 support and the 100 hourly simple moving average.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.

Major Support Levels – $57,500, followed by $57,000.

Major Resistance Levels – $58,500, $60,000 and $62,000.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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