Why Bitcoin Price Could Restart Rally Unless It Dives Below $56.5K

Why Bitcoin Price Could Restart Rally Unless It Dives Below $56.5K

Bitcoin price is correcting gains from $60,000 against the US Dollar. BTC is likely to start a fresh increase as long as there is no close below $56,500 and $55,250.

  • Bitcoin gained bullish momentum above $58,000, but it failed to settle above $60,000.
  • The price is now trading above the $56,500 support and the 100 simple moving average (4-hours).
  • There is a key bullish trend line forming with support near $56,800 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh increase unless the bears gain strength below $56,500 in the near term.

Bitcoin Price is Holding Key Support

This past week, bitcoin price saw a steady increase above the $55,500 resistance against the US Dollar. The BTC/USD pair broke the $58,000 resistance and it settled above the 100 simple moving average (4-hours).

The pair even climbed above the $59,500 level and spiked above the $60,000 resistance. However, there was no close above the $60,000 level. A high was formed near $60,030 and the price started a fresh decline. It broke the $58,500 and $58,000 support levels.

The price declined below the 23.6% Fib retracement level of the upward move from the $50,465 swing low to $60,030 swing high. There was also a break below a connecting bullish trend line with support near $59,000 on the 4-hours chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

The pair tested the $56,500 support zone and the 100 simple moving average (4-hours). There is also another bullish trend line forming with support near $56,800 on the same chart.

If there is a downside break below the trend line support, $56,500, and the 100 simple moving average (4-hours), there are chances of a major decline towards $55,250. It is close to the 50% Fib retracement level of the upward move from the $50,465 swing low to $60,030 swing high. Any more losses might call for a test of $53,800.

Fresh Increase in BTC?

If bitcoin stays above the $56,500 support and the 100 simple moving average (4-hours), there are chances of a fresh increase.

The first key resistance is near the $58,000 level. A successful close above the $58,000 level might open the doors for a fresh push toward the main $60,000 resistance zone. The next key barrier sits near $62,000.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Level – $56,500

Major Resistance Level – $58,000

Did you like this?
Tip Bitcoin Tradeboard with Cryptocurrency

Donate Bitcoin to Bitcoin Tradeboard

Scan to Donate Bitcoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Bitcoin Tradeboard

Scan to Donate Bitcoin Cash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Bitcoin Tradeboard

Scan to Donate Ethereum to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Bitcoin Tradeboard

Scan to Donate Litecoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Bitcoin Tradeboard

Scan to Donate Monero to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Bitcoin Tradeboard

Scan to Donate ZCash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some ZCash: