Bitcoin price has recovered above the $62,000 resistance area. BTC must clear the $62,500 resistance area to continue higher in the near term.
- Bitcoin started a recovery wave above the $61,500 and $62,000 levels.
- The price is trading below the $63,000 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $62,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may have difficulty rising above the $62,500 and $63,000 resistance levels.
Bitcoin price is facing resistance
Bitcoin price losses extended below the $60,000 support area. Bitcoin even tested the $58,500 support area, where bulls emerged. Lows were formed at $58,448, and now the price is correcting its losses. There was a decent rally above the $60,000 level.
The price rose above the 50% Fibonacci retracement level of the downward wave from the swing high at $64,460 to the swing low at $58,448. It even moved above the $62,000 pivot level. However, Bitcoin price is still trading below $63,000 and the 100-hour simple moving average.
The price appears to be facing a rejection zone near the $62,500 resistance level, as discussed yesterday. There is also a major bearish trend line forming with resistance at $62,500 on the hourly chart of the BTC/USD pair. It is close to the 61.8% Fibonacci retracement level of the downward wave from the high of $64,460 to the low of $58,448.
The next major resistance could be $63,000. A clear move above the $63,000 resistance could lead to a steady increase and push the price higher. In the mentioned case, the price may rise and test the $63,500 resistance level. Any further gains could send BTC towards the $65,000 resistance level in the near term.
Another drop in BTC?
If Bitcoin fails to rise above the $62,500 resistance area, it could start another decline. Immediate support on the downside is near the $60,500 level.
The first major support is $60,000. The next support is now forming near $59,500. Any further losses could send the price towards the $58,500 support area in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key Support Levels – $60,500, followed by $60,000.
Major resistance levels – $62,500 and $63,000.