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Is the Recovery About to Fade?

11

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Bitcoin price started a recovery wave from the $55,600 area. Bitcoin is now struggling to surpass the $58,500 resistance level and may decline again.

  • Bitcoin is struggling to recover above the $58,500 area.
  • The price is trading below the $58,200 level and the 100-hour simple moving average.
  • There is a connected bullish trend line forming with support at $57,250 on the hourly chart of the BTC/USD pair (data from Kraken).
  • The pair may struggle to recover above the $58,500 or $58,750 resistance levels in the near term.

Bitcoin price faces obstacles

Bitcoin price losses extended below the $57,200 support level. Bitcoin even traded below the $57,000 support level. A low was formed at $55,591 and the price recently started a recovery wave.

There was a move above the $56,500 and $57,000 resistance levels. It surpassed the 50% Fib retracement level of the downside move from the $59,772 swing high to $55,591 low. The price even surpassed the $58,000 level but faced sellers near $58,500.

Bitcoin is now trading below $58,200 and the 100 hourly simple moving average. A connected bullish trend line is forming with support at $57,250 on the hourly chart of the BTC/USD pair.

On the upside, the price could face resistance near the $58,500 level. The first major resistance is near the $58,750 level or the 76.4% Fib retracement level of the downside move from the $59,772 high to $55,591 low. A clear move above the $58,750 resistance could push the price higher in the coming sessions.

source: BTCUSD on TradingView.com

The next major resistance could be at $59,500. A close above the $59,500 resistance could lead to further gains. In the mentioned case, the price could rally and test the $60,000 resistance.

Another Bitcoin Drop?

If Bitcoin fails to rise above the resistance area at $58,500, it could start declining again. Immediate support on the downside is near the $57,250 level and the trend line.

The first major support is $56,850. The next support is now near the $56,200 area. Any further losses could push the price towards the $55,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing momentum in the bullish zone.

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

Key Support Levels – $57,250, followed by $56,850.

Key resistance levels – $58,500, $58,750.

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