TA: Bitcoin Faces Hurdles Near $58.5K, Why Dips Remain Attractive

NewsBTC

Bitcoin price is currently facing resistance near $58,250 and $58,500 against the US Dollar. BTC could dip in the short-term, but the bulls are likely to remain active near $57,000.

  • Bitcoin recovered above $57,500, but it is facing resistance near $58,250.
  • The price is still trading well below $58,500 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $58,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could dip again, but the bulls are likely to remain active near $57,000.

Bitcoin Price is Facing Hurdles

Bitcoin remained well bid above the $56,500 support zone. As a result, BTC started a fresh increase above the $57,000 and $57,250 resistance levels.

The price even cleared the 23.6% Fib retracement level of the recent drop from the $59,872 high to $56,488 low. However, the price seems to be facing a strong resistance near the $58,250 and $58,500 levels.

It is now trading well below $58,500 and the 100 hourly simple moving average. An immediate resistance is near the $58,180 level. It is near the 50% Fib retracement level of the recent drop from the $59,872 high to $56,488 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

The main resistance is forming near the $58,500 level (a multi-touch zone). There is also a key bearish trend line forming with resistance near $58,600 on the hourly chart of the BTC/USD pair.

If there is an upside break above the $58,250 and $58,500 resistance levels, there are chances of a steady increase. In the stated case, bitcoin price is likely to rise towards the $60,000 and $60,500 levels.

Dips Limited in BTC?

If bitcoin fails to climb above $58,250 and $58,500, there could be a downside correction. The first major support on the downside is near the $57,500 level.

The next major support is near the $57,150 level, below which the price might decline towards the main $56,500 support zone. If there is a downside break below the $56,500 support level, the bulls are likely to lose control. In this case, the bears are likely to aim a test of the $55,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.

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

Major Support Levels – $57,000, followed by $56,500.

Major Resistance Levels – $58,180, $58,250 and $58,500.

via NewsBTC

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