Bitcoin has initiated a recovery wave, moving past the $53,500 resistance zone with BTC breaking through $55,500 and $56,500 resistance levels. This shift has placed it in a short-term positive trajectory. Additionally, surpassing the critical 61.8% Fibonacci retracement level of the drop from $61,040 to $49,110 marks a significant movement. The hourly chart for the BTC/USD pair also shows a break above the $56,850 resistance, indicating a bullish trend.
What Will Bitcoin Bulls Do Now?
Bulls are now eyeing further upward movement beyond the $57,500 mark. Currently, Bitcoin is trading above $57,000 and the 100-hour simple moving average. However, it may encounter resistance at approximately $58,250, which is near the 76.4% Fibonacci retracement level of the recent decline.
The first significant resistance lies around $58,800. A decisive move past this point could drive Bitcoin’s price higher in upcoming sessions, with the subsequent resistance at $59,500. The main barrier remains at $60,000, and a close above this could trigger bullish momentum, potentially testing the $62,000 resistance level.
Is a New Drop Possible for BTC?
Should Bitcoin fail to break through the $58,250 resistance zone, a new downward trend might commence. Initial support is at the $56,400 level, along with the 100-hour SMA. The first major support sits at $54,500, followed by $53,500. Further declines could see prices fall towards the $52,000 support zone shortly.
Key Insights for Traders
Valuable Takeaways:
- Watch for resistance at $58,250 and $58,800 for potential upward movement.
- Key support levels to monitor are $56,400 and $54,500 to prevent further decline.
- A close above $60,000 could signal a strong bullish trend.
- Failure to hold above $57,000 might trigger a new downward wave.
If Bitcoin surpasses the current resistance levels, its rise toward the $60,000 level could continue. However, a failed recovery might prompt another wave of decline. Investors should keep a close watch on these critical levels as Bitcoin currently trades at $57,426, with a slight recovery potentially serving as a lifeline for the cryptocurrency market.