Bitcoin price started a consolidation phase near the $58,500 level. BTC must overcome the $60,500 resistance to trigger a recovery wave in the short term.
- Bitcoin tested the $58,000 zone before a minor recovery.
- The price is trading below $62,000 and the 100 hourly moving average.
- There is a strong bearish trend line forming with resistance at $60,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- If the $60,500 resistance level is not overcome, the pair could slide again.
Bitcoin price begins consolidation
Bitcoin price gained bearish momentum below the $62,500 level. The price even declined below the $60,000 level. Finally, the bulls emerged near the $58,000 level.
A low was formed near $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% Fib retracement level of the downward wave from the $65,070 swing high to $58,009 low.
Bitcoin is currently trading below $61,200 and the 100 hourly moving average. On the upside, the price might face resistance near the $59,650 level. The first key resistance is near the $60,000 level. There is also a key bearish trend line forming with resistance near $60,200 on the hourly chart of the BTC/USD pair.
A clear increase above the $60,200 resistance could propel the price further higher in the coming sessions. The next key resistance could be near $61,500. It is near the 50% Fib retracement level of the downward wave from the $65,070 swing high to $58,009 low.
A close above the $61,500 resistance level could trigger further upside moves. In the said case, the price could rise and test the $62,500 resistance level.
Other disadvantages of BTC?
If Bitcoin fails to clear the $60,200 resistance zone, the downtrend could continue. The immediate support on the downside is at $58,550.
The first key support is near the $58,000 level. The next support is now near the $57,650 zone. Any further losses could push the price towards the $56,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing momentum 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.
