Bitcoin has initiated a recovery wave, breaking past the $55,000 resistance mark. A crucial technical hurdle remains: the cryptocurrency must clear its 100-hour Simple Moving Average (SMA) to continue its upward trajectory in the near term. The rebound was notably marked by surges above the $53,500 and $55,500 levels.
Currently, Bitcoin is trading below $58,000 and its 100-hour SMA. Analysts have observed a contracting triangle forming with resistance around the $57,500 mark on the BTC/USD hourly chart. This suggests that the asset might struggle to break past the $58,000 resistance zone in the immediate future.
The recent performance saw Bitcoin establish a base and break through the $52,500 resistance, subsequently clearing the $53,500 and $55,500 levels. The bulls pushed the price above $56,500, reaching beyond the 61.8% Fibonacci retracement level of its preceding downward wave, which ranged from a $61,040 swing high to a $49,110 swing low. However, the $58,000 level remains a formidable barrier, with bearish forces potentially strong enough to stymie further ascent.
Despite these gains, Bitcoin is still struggling to surpass the 100-hour SMA and the critical $58,000 mark. The price could face first-line resistance near $57,500, in line with the contracting triangle observed on the BTC/USD hourly chart. Beyond that, the next key resistance is around $58,250, which aligns closely with the 76.4% Fibonacci retracement level of the mentioned downward wave.
Should Bitcoin manage to break clear of the $58,250 resistance, it could see a further rise in the sessions ahead. The next significant levels to watch would be $59,200, followed by a major hurdle at $60,000. Successfully closing above the $60,000 resistance might trigger a bullish surge, potentially propelling the price to test the $62,000 resistance.
On the flip side, if Bitcoin fails to break through the $58,250 resistance zone, it could face another decline. Immediate support on the downside is around the $56,000 level, with the first major support at $55,000 and the next near $53,500. Any further losses might drive the price down toward the $52,000 support zone in the near term.
Technical indicators suggest mixed signals: the Hourly MACD is gaining pace in the bullish zone, while the Hourly RSI for BTC/USD is now hovering above the 50 level. Major support levels are pegged at $56,000 and $55,000, while key resistance levels remain at $57,500 and $58,250. This precarious balance underscores the current volatility and the pivotal nature of upcoming price actions.
