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Bitcoin Topside Bias Vulnerable If It Continues To Struggle Below $60K

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Cryptocoins News / NewsBTC 161 Views

Bitcoin gained pace and climbed above $58,000 against the US Dollar. However, BTC is still struggling to gain pace for a move towards the $60,000 level.

  • Bitcoin started a fresh increase above the $57,000 and $58,000 levels.
  • The price is now trading above $57,000 and the 100 hourly simple moving average.
  • There is a key contracting triangle forming with resistance near $58,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear the $58,000 resistance to continue higher in the near term.
Bitcoin Price is Consolidating Gains

Bitcoin price started a fresh increase above the $55,000 and $57,000 resistance levels. BTC even climbed above the $57,000 level and the 100 hourly simple moving average.

The price even broke the $58,000 resistance and traded close to the $59,000 level. A high is formed near $58,890 and the price is now correcting gains. There was a break below the $58,500 support level. The price declined below the 23.6% Fib retracement level of the upward move from the $53,300 swing low to $58,890 high.

It is now trading above $57,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $58,000 level.

Source: BTCUSD on TradingView.com

There is also a key contracting triangle forming with resistance near $58,000 on the hourly chart of the BTC/USD pair. A clear break above the $58,000 resistance zone could open the doors for more upsides. The next key resistance is near the $58,500 level. Any more gains might push the price towards $60,000. If there is a close above the $60,000 level, the price could accelerate higher.

Fresh Decline In BTC?

If bitcoin fails to clear the $58,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $57,400 level.

The first major support is now forming near the $56,200 level. The next major support is near the $56,200 level. It is close to the 50% Fib retracement level of the upward move from the $53,300 swing low to $58,890 high. Any more losses may possibly push the price towards $55,000.

Technical indicators:

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

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

Major Support Levels – $57,000, followed by $56,200.

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


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