Bitcoin price has started a consolidation phase near the $58,500 level. BTC needs to break the $60,500 resistance to start a recovery wave in the short term.
- Bitcoin tested the $58,000 area before experiencing a slight recovery.
- Price is trading below $62,000 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $60,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could fall again if there is no move above the $60,500 resistance.
Bitcoin Price Begins Consolidation
Bitcoin price gained a bearish momentum below the $62,500 level. The price even dipped below the $60,000 level. Eventually, the bulls emerged near the $58,000 level.
A low was formed at $58,009 and the price is now consolidating losses. There was a minor recovery wave above the $58,500 and $58,800 levels. The price tested the 23.6% Fibonacci retracement level of the downward wave from the $65,070 high to $58,009 low.
Bitcoin is now trading below $61,200 and the 100 hourly simple moving average. On the upside, the price could face resistance near the $59,650 level. The first key resistance is near the $60,000 level. There is also a major bearish trend line forming with resistance at $60,200 on the hourly chart of the BTC/USD pair.
A clear move above the $60,200 resistance could push the price further higher in the coming sessions. The next key resistance could be $61,500. It is close to the 50% Fibonacci retracement level of the downward wave from the $65,070 high to $58,009 low.
A close above the $61,500 resistance could trigger further upside. In the indicated case, the price could rise and test the $62,500 resistance.
Other disadvantages of Bitcoin?
If Bitcoin fails to break above the $60,200 resistance zone, it could continue to decline. Immediate support on the downside lies near the $58,550 level.
The first major support is at $58,000. The next support is now near the $57,650 area. Any further losses could send the price towards the $56,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing ground in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels: $58,550, followed by $58,000.
Key resistance levels: $60,200 and $61,500.
