Analysis

TA: Bitcoin Reclaims 100 SMA, Here’s Why BTC Could Resume Uptrend

Bitcoin price started a fresh increase above the $ 57,500 resistance against the US Dollar. BTC is showing positive signs above $ 58,000 and the 100 hourly SMA.

  • Bitcoin remained well bid above the $ 56,000 level and it started a fresh increase.
  • The price is now trading above the $ 58,000 level and the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $ 57,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower, but the bulls are likely to remain active near $ 57,800 and $ 57,500.

Bitcoin Price Turns Green

Bitcoin traded as low as $ 55,492, where the bulls took a strong stand. As a result, BTC started a fresh increase above the $ 56,500 and $ 57,000 resistance levels.

The price even cleared the 50% Fib retracement level of the downward move from the $ 59,475 swing high to $ 55,492 low. There was also a break above a key bearish trend line with resistance near $ 57,100 on the hourly chart of the BTC/USD pair.

It is now trading above the $ 58,000 level and the 100 hourly simple moving average. An immediate resistance is near the $ 58,275 level. The 76.4% Fib retracement level of the downward move from the $ 59,475 swing high to $ 55,492 low is also near the $ 58,500 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

A clear break above the $ 57,275 and $ 58,500 resistance levels could open the doors for more gains. The next key resistance on the upside is near the $ 59,500 level. The main resistance is still near the $ 60,000 zone.

Dips Supported in BTC?

If bitcoin fails to climb above $ 58,275 and $ 58,500, there could be a short-term downside correction. An initial support on the downside is near the $ 57,750 level and the 100 hourly simple moving average.

The next major support is near the $ 57,500 level (the recent breakout zone). If the bulls fail to protect the 100 hourly SMA and then $ 57,500, there are chances of a steady decline. In the stated case, the price might decline towards the $ 56,500 level 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 well above the 50 level.

Major Support Levels – $ 57,750, followed by $ 57,500.

Major Resistance Levels – $ 58,275, $ 58,500 and $ 59,500.

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Technical analysis – NewsBTC

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