Why Bitcoin Price Could Rally If It Settles Above $57K
Bitcoin price is recovering nicely above $55,000 against the US Dollar. BTC is likely to start a strong increase if there is a daily close above the $57,000 resistance.
- Bitcoin started a fresh increase 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 near $55,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally towards the $60,000 level if there is a close above the $57,000 resistance zone.
Bitcoin Price is Showing Positive Signs
This past week, bitcoin price testes the $50,500 support zone and started a fresh increase against the US Dollar. The BTC/USD pair formed a support base above $52,000 and recently started a fresh increase.
The price broke the $53,000 and $53,500 resistance levels to move into a 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 downward move from the $57,235 swing high to $50,400 swing low.
Source: BTCUSD on TradingView.com
Moreover, there was a break above a major bearish trend line with resistance near $55,000 on the 4-hours chart of the BTC/USD pair. The pair is now trading above the 76.4% Fib retracement level of the downward move from the $57,235 swing high to $50,400 swing low.
An immediate 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.
Fresh Decline in BTC?
If bitcoin fails to settle above the $57,000 resistance or the 100 simple moving average (4-hours), there is a risk of a fresh decline. An initial support on the downside is near the $55,500 level.
The first key support is near the broken trend line and $55,000. A clear break below the $55,000 support might open the doors for another decline. In the stated case, the price could decline towards the $53,200 level or even $53,000.
Technical indicators
4 hours 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 now moving nicely above the 50 level.
Major Support Level – $55,500
Major Resistance Level – $57,000
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OhNoCrypto
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, @KhareemSudlow
