Bitcoin started a new uptrend yesterday evening. Classically, it rallied from $53,600, where it was trading in the last few hours to the weekly close, to $58,100. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could continue the recovery and revisit the $60,000 resistance in the near term.
Bitcoin Returns Above 100 SMA
Bitcoin started a fresh high late yesterday after finding decent support in the $53,500 region. It broke the $55,000 resistance zone to start a decent recovery wave. There was a break above a key bearish trend line with resistance near $54,800 on the hourly chart of the BTC/USD pair. Besides, the pair also surpassed the 50% Fib retracement level of the downward move from the $59,376 high to $53.576 high.
BTC is now trading above $57,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $58,000 level. This is 76% of the downward move from $59,376 to $53,576. Close to the 4 Fib retracement level.
What are the Price Targets?
The next key resistance is near the $58,500 level. A close above the $58,000 and $58,000 levels could push the price towards $60,000. If there is a close above the $60,000 level, the price could move higher. The next major resistance is near the $61,200 level. Any further gains could push the price towards the $62,000 level in the near term.
Will Bitcoin Drop?
According to Jindal, if Bitcoin fails to break past the $58,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $57,200 level. The first major support is currently formed near the $56,500 level. The next major support is near the $56,000 level and the 100 hourly SMA, below which the price could continue its decline towards the $55,000 support. More losses could likely push the price towards $53,500.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the overbought zone.
- Main Support Levels – 57,000 then $56,500
- Main Resistance Levels – $58,000, $58,500 and $60,000