Bitcoin price is recovering nicely above $ 55,000 against the US Dollar. Looks like a close above the $ 57,000 daily resistance. BTC is likely to start a strong increase. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Bitcoin started a new rise above the $ 55,000 and $ 55,500 resistance levels.
- The price is now well above $ 55,000 and the 100 simple moving average (4 hours).
- There was a break above a major bearish trend line with resistance around $ 55,000 on the 4-hour chart of the BTC / USD pair (data from Kraken).
- If there is a close above the $ 57,000 resistance zone, the pair could rise to the $ 60,000 level.
Bitcoin (BTC) Price Shows Positive Signals
Last week, Bitcoin price tested the $ 50,500 support zone and started a new rise against the US Dollar. The BTC / USD pair has formed a support base above $ 52,000 and has begun a new surge.
The price broke the $ 53,000 and $ 53,500 resistance levels to move into the positive zone. It opened the doors for a break above the $ 55,000 resistance zone. There was a break above the 50% Fib retracement level of the downside from $ 57,235 to $ 50,400.
There was also a break above a major bearish trend line with resistance near $ 55,000 on the 4-hour chart of the BTC / USD pair. The pair is currently trading above the 76.4% Fib retracement level of the bearish move from $ 57,235 to $ 50,400.
Instant resistance is near the $ 57,000 level and the 100 simple moving average (4 hours). A successful break and close above the $ 57,000 resistance zone could open the doors for a move towards the $ 60,000 resistance zone in the coming sessions.
Will Bitcoin (BTC) Fall?
If Bitcoin fails to break above the $ 57,000 resistance or the 100 simple moving average (4 hours), there is a risk of a new decline. Initial support on the downside is near the $ 55,500 level.
The first major support is near the broken trend line and is $ 55,000. A clear break below the $ 55,000 support could open the doors for another drop. In the stated situation, the price could drop to the $ 53,200 level or even $ 53,000.
- 4-hour 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 currently moving well above the 50 level.
- Major Support Level – $ 55,500
- Major Resistance Level: $ 57,000
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