Bitcoin price failed to rise further above $ 60,800 and was corrected lower against the US dollar. BTC is now holding profits and it is likely to rise above $ 61,000 unless there is a break below the 100 hour SMA.
- Bitcoin is struggling to gain momentum above the $ 60,000 and $ 60,500 levels.
- The price is now trading above the $ 59,000 level and the 100 hour simple moving average.
- A large contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 60,050.
- The pair is likely to start a big rally once it hits the $ 60,050 and $ 60,500 levels.
Bitcoin price holds profits
Bitcoin fell sharply towards the $ 58,000 support after being turned down above $ 60,500. However, BTC remained well bid over the $ 58,000 zone and was able to make up for losses.
There was a pause above the $ 59,000 level and the price even surged above $ 60,000. A high is being formed near $ 60,677 and the price is currently consolidating. It traded below the 23.6% fib retracement level of the move up from the low of $ 58,025 to the high of $ 60,677.
On the flip side, the price finds bids near the $ 59,250 and $ 59,100 levels. The 50% Fib retracement level of the move up from the low of $ 58,025 to the high of $ 60,677 is also close to the $ 59,350 level.
Source: BTCUSD on TradingView.com
A large contraction triangle is also forming on the hourly chart of the BTC / USD pair with resistance near USD 60,050. If there is an uptrend above the $ 60,050 and $ 60,200 levels, there is a high likelihood of a new rally. In the case mentioned, the price should rise towards USD 61,200 and USD 62,000 in the short term.
Dips supported in BTC?
Unless Bitcoin rises above $ 60,050 and $ 60,200, there may be a short-term downward correction. Initial downside support is near the USD 58,350 level.
The next big support is near the triangle at $ 58,750 and the 100-hour simple moving average. If the bulls fail to protect the 100-hour SMA, a sharp downward break can occur. In that case, the price could drop to the $ 56,800 level in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now just above the 50 level.
Major Support Levels – $ 59,350, followed by $ 59,000.
Main Resistance Levels – $ 60,050, $ 60,500, and $ 61,200.
