Bitcoin breaking this resistance to convergence could trigger a recovery

The Bitcoin/U.S. dollar exchange rate is trying to correct upwards to over $57,000. If the closing price is above the resistance level of $58,000, BTC may accelerate the pace.

  • Bitcoin is facing resistance near 58,000 USD and 58,500 USD.
  • The price is now close to $57,500 and the 100-hour simple moving average.
  • Breaking through the main bearish trend line on the hourly chart of the BTC/USD currency pair, with resistance near 57,100 USD (data feed from Kraken).
  • The currency pair must stabilize above 58,000 USD to start a new rise in the short term.

Bitcoin prices are still struggling

Bitcoin price remained within the range above the $55,500 support zone. BTC formed a foundation above 55,500 USD and is currently trying A decent wave of recovery.

The resistance levels of $56,500 and $57,000 were broken. In addition, on the hourly chart of the BTC/USD currency pair, the main bearish trend line was broken, and the resistance was near 57,100 USD.The currency pair even soared above 57,500 USD 100 hour simple moving average.

However, the price is still struggling to break through the $58,000 level. A high was formed near $58,222, and the price is now consolidating its gains.

The bears pushed the price below the 23.6% Fibonacci retracement level, from a swing low of $55,909 to a high of $58,222. The immediate support is around 57,500 USD. The first major support level is now formed near $57,000.

Source: BTCUSD on TradingView.com

The 50% Fibonacci retracement level of the upward movement from the swing low of $55,909 to the high of $58,222 is also close to $57,000. The next major support level is around $56,500. Below this level, the price may continue to fall to the major support level of $55,500.

Bitcoin’s upper limit?

If Bitcoin remains above the $56,500 support level, it may continue to rise. On the bright side, the initial resistance is near $58,000.

The next key resistance is near $58,500. Closing prices above the levels of 58,000 USD and 58,500 USD may start to rise steadily in the short term. The next major resistance is near the $60,000 level.

Technical index:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.

The main support is at $56,500, followed by $56,000.

The main resistance levels – 58,000 USD, 58,500 USD and 60,000 USD.

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