Bitcoin Price Retains Support: Is a Bounce Back on the Horizon?

As a seasoned crypto investor with over a decade of experience in this wild rollercoaster ride we call the cryptocurrency market, I find myself analyzing the current Bitcoin situation with a mix of cautious optimism and healthy skepticism.


Bitcoin‘s price has maintained a steady position above the significant support level of $58,500. However, Bitcoin’s growth might only be sustainable if it manages to surpass the resistance level of $61,500.

    Bitcoin is struggling to rise above the $60,200 and $61,500 resistance levels.
    The price is trading below $61,000 and the 100 hourly Simple moving average.
    There is a connecting bullish trend line forming with support at $58,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    The pair might extend losses if it fails to stay above the $58,500 support.

Bitcoin Price Stuck In A Range

Over the given period, Bitcoin’s price held steady above two important support points at approximately $58,000 and $58,500. This formed a base from which the price tried to rebound, pushing towards the resistance point of around $59,500. Yet, there was significant bearish activity around the $61,200 mark.

Initially, there was a drop in the price, which then tested the $58,800 support level. A minimal low point was reached at $58,717, and currently, the price is stabilizing as it recovers from its losses. It appears to be holding close to the 23.6% Fibonacci retracement level of the recent downswing from the peak of $61,143 to the trough of $58,717.

Currently, Bitcoin’s price is dipping below the $61,000 mark and the 100-hour Simple Moving Average. Additionally, a rising bullish trendline is emerging, offering support around $58,800 on the hourly BTC/USD chart.

Positively speaking, the price may encounter a barrier around the $59,650 point. The initial barrier is close to the $60,200 mark. This level aligns with approximately 61.8% of the recent drop from the high of $61,143 to the low of $58,717 as measured by Fibonacci retracement.

Bitcoin Price Retains Support: Is a Bounce Back on the Horizon?

If the price surges past the $60,200 barrier in the upcoming periods, it may continue to climb higher with potential resistances at $61,200. Breaking above $61,200 could ignite further increases, potentially leading the price to challenge the $62,500 resistance level.

More Downsides In BTC?

If Bitcoin doesn’t manage to break through the $60,200 barrier, it might initiate another drop instead. The nearest support can be found around $58,800 and the trendline. In other words, if Bitcoin struggles to climb above $60,200, a possible decline could ensue, with $58,800 as a potential safety net.

Initially, significant backing can be found at approximately $58,500. Currently, the next level of support is approaching the vicinity of $58,000. If there are any further declines, it could potentially push the price towards the $56,500 support in the near future.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

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

Major Support Levels – $58,800, followed by $58,000.

Major Resistance Levels – $60,200, and $61,200.

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2024-08-30 05:46