Is the Momentum of Bitcoin’s Price Recovery at Risk of Losing Steam?
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Bitcoin Price Recovery Wave
Bitcoin price started a recovery wave after crashing below $50,000. Currently, BTC is back above $55,000 but faces numerous hurdles near the $58,000 zone.
The recovery wave began above the $52,500 and $55,000 levels with the price currently trading below $58,000 and the 100 hourly Simple Moving Average. A significant development was the 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). However, the pair may struggle to clear the $58,000 resistance zone.
Bitcoin Price Recovery Details
Bitcoin price witnessed extended losses below the $52,500 support zone, trading even under the $51,100 and $50,000 levels before bottoming near $49,111. The recent price surge saw a recovery above the $52,500 level and a test of the 50% Fib retracement level from the downward move between the $61,040 swing high and the $49,111 low. Additionally, a break above the connecting bearish trend line with resistance at $55,100 on the hourly chart of the BTC/USD pair was observed.
Despite the positive developments, Bitcoin price remains below $58,000 and the 100 hourly Simple Moving Average. Possible resistance at the $56,500 level near the 61.8% Fib retracement level could hinder further upward movement. Further resistance is expected near $58,250 and $58,800, with a potential price surge if these levels are breached.
Source: BTCUSD on TradingView.com
The next major obstacle for Bitcoin price is at $60,000, with a close above this resistance level expected to trigger bullish momentum, possibly leading to a test of the $62,000 resistance.
Potential Future Decline in BTC
If Bitcoin fails to break above the $58,000 resistance zone, another decline might ensue, with immediate support at the $55,000 level. Lower support levels are anticipated at $53,500 and $52,000, potentially driving the price towards the $50,000 support in the near future.
Technical Indicators:
Hourly MACD – The MACD is now showing bullish momentum.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is 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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