Bitcoin has initiated a recovery wave following a significant crash below the $50,000 mark. Currently, BTC has managed to climb back above $55,000, though it encounters considerable resistance around the $58,000 level.
After plummeting to a low near $49,111, Bitcoin managed to rebound past the $52,500 support level, even briefly surpassing $55,000. Notably, the price action broke through a bearish trend line with resistance around $55,100 on the BTC/USD hourly chart. Despite this recovery, Bitcoin still trades below $58,000 and the 100-hour Simple Moving Average.
On the upside, Bitcoin could face its first line of resistance around $56,500, which aligns closely with the 61.8% Fibonacci retracement level from its descent from a $61,040 high to the $49,111 low. Beyond that, the critical resistance at $58,250 could determine the next moves. Should the price clear this, it might trigger further gains, eyeing the next significant resistance at $58,800 and possibly even targeting $60,000.
However, failure to break above the $58,000 resistance zone could lead to another downward trajectory for BTC. Immediate support seems to be around $55,000, while the next major support levels are situated at $53,500 and then $52,000. Any further declines could see Bitcoin revisiting the $50,000 support zone in the near term.
Technical indicators are showing some positive signs; the Hourly MACD is picking up momentum in the bullish zone, and the RSI for BTC/USD has moved above the 50 level, suggesting potential bullish momentum. Key support levels are identified at $55,000 and $53,500, while major resistance levels hover at $56,500 and $58,000.
