Bitcoin initiated a recovery wave above the $53,500 resistance zone. BTC surpassed the $55,500 and $56,500 resistance levels, moving into a short-term positive zone. The move above the key 61.8% Fib retracement level of the drop from $61,040 to $49,110 was significant. Additionally, a downtrend line was broken above the $56,850 resistance on the hourly chart of the BTC/USD pair.
What Will Bitcoin Bulls Do Now?
Bulls are now attempting further upward movement above the $57,500 level. Bitcoin is trading above the $57,000 level and the 100-hour simple moving average. On the upside, the price may face resistance near the $58,250 level. This level is close to the 76.4% Fib retracement level of the drop from $61,040 to $49,110.
The first major resistance is positioned near the $58,800 level. A clear move above this resistance could push the price further up in the coming sessions. The next major resistance could be $59,500. The main hurdle is located at the $60,000 level. A close above the $60,000 resistance could trigger bullish movements. In this case, the price might test the $62,000 resistance.
Is a New Drop Possible for BTC?
If Bitcoin fails to surpass the $58,250 resistance zone, a new decline could start. Immediate support on the downside is at the $56,400 level and the 100-hour SMA. The first major support is at $54,500, and the next support is at $53,500. Further losses could send the price towards the $52,000 support zone in the short term.
The hourly MACD for Bitcoin is gaining pace in the bullish zone. The hourly RSI for BTC/USD is above the 50 level. Key support levels are $56,400 and then $54,500. Key resistance levels are $58,250 and $58,800.
If Bitcoin surpasses the current resistance levels, it could continue its rise towards the $60,000 level. However, a failed recovery could trigger a new wave of decline. Cryptocurrency investors should closely monitor these critical levels. At the time of writing, the flagship cryptocurrency Bitcoin is trading at $57,426. A slight recovery in BTC could be a lifeline for cryptocurrencies.
