As an analyst with over a decade of experience in the financial markets, I have seen my fair share of market volatility and trends. Bitcoin’s recent recovery wave is a classic example of how the cryptocurrency market can be unpredictable yet fascinating.
Bitcoin‘s price has rebounded following its fall beneath $50,000. Currently, Bitcoin has surpassed $55,000, but it encounters several obstacles around the $58,000 level.
- Bitcoin started a recovery wave above the $52,500 and $55,000 levels.
The price is trading below $58,000 and the 100 hourly Simple moving average.
There was a break above a connecting bearish trend line with resistance at $55,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might struggle to clear the $58,000 resistance zone.
Bitcoin Price Starts Recovery Wave
The cost of Bitcoin continued to drop below the $52,500 barrier, with prices dipping as low as $49,111. It even fell beneath the $51,100 and $50,000 thresholds. However, Bitcoin’s price has now started to rebound slightly.
The price surpassed $52,500, reached the halfway point (50%) of its recent downward slide from the peak of $61,040 to the low of $49,111, and also broke a bearish trend line offering resistance at $55,100 on an hourly BTC/USD chart.
Currently, Bitcoin’s price remains under $58,000 and slightly below its 100-hour Simple Moving Average. If it rises, it may encounter resistance around the $56,500 mark. Notably, this price point is close to the 61.8% Fibonacci retracement level of the decline from the peak of $61,040 to the trough of $49,111.
Initially, a significant hurdle lies around the $58,250 mark. If we surpass this barrier at $58,250, it may propel the price upwards in the approaching periods. Potentially, the next major obstacle could be found at $58,800.
Overcoming the upcoming challenge requires breaking through the $60,000 barrier. Should we manage to surpass this resistance level, it may trigger a series of optimistic price increases, potentially pushing the value up to $62,000 and testing yet another potential resistance.
Another Decline In BTC?
Should Bitcoin not manage to surge beyond the $58,000 barrier, there’s a chance it might initiate another drop. In such a scenario, potential support for Bitcoin could be found around the $55,000 mark.
In simpler terms, initially, a significant level of support for the price is at $53,500. Currently, the next potential support is around $52,000. If the price continues to drop, it may head towards the $50,000 support area in the near future.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $55,000, followed by $53,500.
Major Resistance Levels – $56,500, and $58,000.
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2024-08-06 05:46