Recently, there was a minor downside correction below the $57,500 level. There was a break below the 23.6% Fib retracement level of the upward move from the $54,000 swing low to $58,350 high. The price even spiked below the $57,000 level, but dips were limited.
Bitcoin found support near the $56,200 level. The 50% Fib retracement level of the upward move from the $54,000 swing low to $58,350 high is acting as a support. There is also a key bullish trend line forming with support near $55,000 on the hourly chart of the BTC/USD pair.
On the upside, the price is facing a short-term resistance near the $57,500 and $58,000 levels. A clear break above the $58,000 resistance could open the doors for a new all-time high. In the stated case, the bulls are likely to aim a test of $60,000.
Dips Limited in BTC?
If bitcoin fails to clear the $58,000 resistance zone, it could correct lower. An initial support on the downside is near the $56,000 level.
The first major support is near the $55,000 level. If there is a downside break below the trend line, $55,000, and the 100 hourly simple moving average, there could be a drop towards the $52,000 support.
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is close to the 50 level.
Major Support Levels – $56,000, followed by $55,000.
Major Resistance Levels – $57,500, $58,000 and $60,000.