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TA: Bitcoin Lacks Momentum Above $56K, Why Rally Isn’t Over Yet

NewsBTC

Cryptocoins News / NewsBTC 255 Views

Bitcoin is showing positive signs above $54,000 against the US Dollar. BTC could accelerate higher if there is a clear break above the $56,000 resistance zone.

  • Bitcoin remains well supported above the $54,500 level.
  • The price is now trading above $55,000 and the 100 hourly simple moving average.
  • There is a key declining channel forming with resistance near $55,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh rally if there is a clear break above the $56,000 resistance.
Bitcoin Price Remains In Uptrend

Bitcoin price remained in a positive zone and climbed above the $55,000 resistance. BTC even broke the $56,000 resistance level and settled above the 100 hourly simple moving average.

However, the price failed to gain strength above the $56,000 zone. A high was formed near $56,500 before there was a downside correction. The price corrected lower below the $56,000 level. The price even traded below the $55,000 level and spiked below the 100 hourly SMA.

Bitcoin found support near $54,500 and a low was formed at $54,396. The price is now rising and it is trading above the $55,500 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $56,500 swing high to $54,396 low.

It is now facing resistance near the $55,500 level. There is also a key declining channel forming with resistance near $55,650 on the hourly chart of the BTC/USD pair. The channel resistance is close to the 50% Fib retracement level of the recent decline from the $56,500 swing high to $54,396 low.

Source: BTCUSD on TradingView.com

The main resistance is forming near the $56,000 zone, above which the price could accelerate higher. The next major resistance sits near the $57,200 level. Any more gains could set the pace for a move towards the $58,000 level.

Dips Supported In BTC?

If bitcoin fails to clear the $56,000 resistance zone, it could correct lower. An immediate support on the downside is near the $55,000 level.

The first major support is now forming near the $54,500 level. The next major support is near the $54,000 level, below which there is a risk of a larger decline.

Technical indicators:

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

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

Major Support Levels – $54,500, followed by $54,000.

Major Resistance Levels – $55,500, $55,650 and $56,000.


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