Bitcoin Shows Signs of Rally, Here’s What Could Trigger More Upsides

Bitcoin price recovered losses and surpassed the $56,550 resistance zone against the US Dollar. BTC is likely to rally if there is a close above $58,000 and the 100 hourly SMA.

Bitcoin remained strong above $54,000 and it climbed above $56,550
The price is now facing resistance the $57,500 level and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $56,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a strong increase if there is a close above $58,000 and the 100 hourly SMA.

Bitcoin Price Recovers Losses
Bitcoin declined sharply after it failed to test the $60,000 resistance. BTC broke the $57,500 and $55,500 support levels. However, it found support near $53,500 and it recently started a fresh increase.
There was a decent recovery wave above the $55,000 and $56,000 levels. The price cleared the 50% Fib retracement level of the key decline from the $59,500 swing high to $53,460 swing low. There was also a break above a key bearish trend line with resistance near $56,800 on the hourly chart of the BTC/USD pair.
The pair is now facing resistance the $57,500 level and the 100 hourly simple moving average. It is also stuck near the 61.8% Fib retracement level of the key decline from the $59,500 swing high to $53,460 swing low.

Source: BTCUSD on TradingView.com
To start a strong increase, bitcoin must clear the $57,500 barrier and the 100 hourly SMA. The next immediate resistance is near $58,000, above which the price could grind higher towards the $59,500 level. The main resistance is still near the $60,000 zone.
Fresh Drop in BTC?
If bitcoin fails to clear the $57,500 resistance or $58,000, it could start a fresh decline. An initial support on the downside is near the $56,500 level.
A downside break below the $56,500 support zone could lead the price towards the $54,850 pivot level. Any more losses might call for a fresh test of the $53,500 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $56,500, followed by $54,850.
Major Resistance Levels – $57,500, $58,000 and $59,500.

Zita Mraz

Zita Mraz

I have a strong track record of delivering quality, well-researched articles that provide valuable insights into the world of cryptocurrency. I am also an experienced interviewer, and have conducted interviews with some of the biggest names in the industry. My goal is to always provide my readers with the most accurate and up-to-date information possible.