Bitcoin extended its rally above $57,000 against the US Dollar. BTC could continue to rise if it is above the $56,000 support area.
- Bitcoin is trading in positive territory above the $56,000 support area.
- The price is now trading above $56,000 and the 100 hourly simple moving average.
- There was a break above a major descending channel with resistance near $55,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is correcting gains, but the bulls could remain active near $56,000.
Bitcoin price eyes more pros
Bitcoin price remains well supported above the $55,000 pivot level. BTC gained pace and overcame several hurdles near the $55,500 level.
There was also a break above a major descending channel with resistance near $55,400 on the hourly chart of the BTC/USD pair. The pair rose above the $56,000 resistance and settled above the 100-hourly simple moving average.
There was also a break above the $57,000 level and the price was trading as high as $57,837. It is now correcting lower and trading below $57,500.
There was a break below the 23.6% Fib retracement level of the upward move from the $54,396 swing low to $57,837 high. On the downside, initial support is near the $56,200 level. On the upside, the bulls are facing resistance near the $57,000 level.
Source: BTCUSD on TradingView.com
The first major resistance is near the $57,500 level. A clear break above the $57,500 resistance could open doors for a decent rally. The next major resistance is near the $58,500 level. Any further gains could set the pace for a move towards the $59,200 level.
Support dips in bitcoin?
If Bitcoin fails to clear the $57,500 resistance area, it may correct lower. There is immediate support on the downside near the $56,200 level.
The first major support is ice forming near the $56,000 level. It is close to the 50% Fib retracement level of the upward move from the $54,396 swing low to the $57,837 high. A break-down below the $56,000 support area may open the door to a larger decline.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now approaching the 50 level.
Key support levels – $56,200, followed by $56,000.
The main resistance levels are $57,000, $57,500 and $58,500.
