Bitcoin price gained pace and it cleared the USD 55,000 resistance zone against the US dollar. BTC is showing positive signs and is likely to accelerate higher above USD 56,500.
- Bitcoin started off quite a bit, it settled nicely above the USD 53,000 resistance.
- The price is now trading well above USD 54,000 and the 100-hour simple moving average.
- A short-term bullish channel is forming with resistance near USD 55,850 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair is likely to remain higher than the USD 56,000 and USD 56,500 resistance levels.
Bitcoin price remains bullish
Bitcoin formed a strong support base above the USD 53,000 level and boosted gains. BTC even broke the key USD 55,000 resistance zone and settled well above the 100 easy hourly moving average.
There was also a push above the USD 55,500 level and the price traded as high as USD 55,782. It is now consolidating gains well above the USD 55,000 level. A bullish channel appears to be forming in the near term with resistance near USD 55,850 on the hourly chart of the BTC / USD pair.
Source: BTCUSD on TradingView.com
If there is an upward breach above the channel resistance, the price could continue to climb towards the USD 56,500 and USD 57,000 levels. The next big resistance is near the USD 58,000 level, above which the price could accelerate higher towards the USD 60,000 level.
Dips limited in BTC?
If bitcoin fails to clear the USD 56,000 and USD 56,500 resistance levels, it could start a downside correction. An immediate support on the downside is near the USD 55,200 level.
The first major support is near the USD 55,000 level and the channel’s lower trendline. The 23.6% Fib retracement level of the recent upward move from the swing low of $ 47,000 to the high of $ 55,782 is also near the $ 53,700 level.
If there are more losses, the price could slide towards the USD 52,000 support and the simple hourly moving average 100. The 50% Fib retracement level of the recent upward move from the USD 47,000 swing low to the USD 55,782 high is also in positioned near the USD 51,500 zone to provide support if there is a sustained decline.
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well above the 50 level.
Key Support Levels – USD 55,000, followed by USD 53,000.
Major Resistance Levels – USD 56,000, USD 58,000 and USD 60,000.