Bitcoin price is consolidating gains above the $58,000 resistance against the US Dollar. BTC is likely to surge above the $59,500 and $60,000 resistance levels in the near term.
- Bitcoin is showing a lot of bullish signs, but it is still below the $60,000 resistance zone.
- The price is trading nicely above the $58,000 support and the 100 hourly simple moving average.
- There is a crucial contracting triangle forming with resistance near $59,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong increase once it clears the $59,200 and $59,500 levels.
Bitcoin Price is Likely to Rally Soon
Bitcoin failed to settle above the $59,500 resistance and recently started a downside correction. BTC broke the $59,000 level and it even traded below the $58,500 support.
However, the bulls were active near the $58,000 support and the 100 hourly simple moving average. A low is formed near $57,922 and it seems like the price is trading in a contracting range. It has already recovered above the $58,500 level.
There was a break above the 50% Fib retracement level of the recent decline from the $59,650 high to $57,922 low. Bitcoin is now facing resistance near the $59,200 level.
Source: BTCUSD on TradingView.com
It seems like there is a crucial contracting triangle forming with resistance near $59,200 on the hourly chart of the BTC/USD pair. The triangle resistance is near the 61.8% Fib retracement level of the recent decline from the $59,650 high to $57,922 low.
A successful break above the triangle resistance could open the doors for a massive bullish wave. The next major resistance is near the $59,500 zone, above which the price is likely to rally above $60,000.
Dips Limited in BTC?
If bitcoin fails to climb above $59,200 and $60,000, there could be a downside correction. The first major support on the downside is near the $58,500 level.
The next major support is near the $58,350 level, the 100 hourly SMA, and the triangle trend line. If there is a downside break below the triangle support, the price could dive towards $56,500.
Technical indicators:
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just above the 50 level.
Major Support Levels – $58,500, followed by $58,350.
Major Resistance Levels – $59,200, $59,500 and $60,000.