TA: Why Bitcoin Breaking This Resistance Could Spark a Significant Surge
Bitcoin price is trading in a bullish zone above $57,600 against the US Dollar. BTC is likely to accelerate higher once it clears the $59,800 and $60,000 resistance levels.
- Bitcoin is trading in a positive zone, but it is facing hurdles near $60,000.
- The price is now well above the $58,000 support and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $57,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a sharp rally if it clears the $59,800 and $60,000 resistance levels.
Bitcoin Price is Showing Positive Signs
Bitcoin mostly traded in a positive zone above the $57,000 pivot level. BTC extended its upward move above the $59,500 resistance level and it settled nicely above the 100 hourly simple moving average.
However, the bulls faced a strong resistance near the $59,800 and $60,000 resistance levels. A high was formed near $59,829 before there was a downside correction. The price declined below the $59,000 and $58,000 levels.
There was also a spike below the $57,500 level, but the bulls protected the 100 hourly simple moving average. A low is formed near the $56,800 level and the price is now back above $58,000. The bulls pushed bitcoin above the 50% Fib retracement level of the downward move from the $59,829 high to $56,800 low.
Source: BTCUSD on TradingView.com
It is currently trading well above the $58,000 support and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $57,800 on the hourly chart of the BTC/USD pair.
Bitcoin seems to be consolidating just above the 76.4% Fib retracement level of the downward move from the $59,829 high to $56,800 low. The key hurdle is near the $59,800 and $60,000 levels. A successful close above the $60,000 level will most likely pump the price towards the $62,000 level in the coming sessions.
Dips Supported in BTC?
If bitcoin fails to climb above $59,800 and $60,000, there could be a downside correction. The first major support on the downside is near the $58,400 level.
The next major support is near the $58,000 level, the 100 hourly SMA, and the trend line. If there is a downside break below the trend line, the price could revisit $56,800.
Technical indicators:
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
Major Support Levels – $58,500, followed by $58,000.
Major Resistance Levels – $59,800, $60,000 and $60,800.
Source: Read Full Article