TA: Bitcoin Corrects Below $58K, But Here’s Why Uptrend Is Still Intact

Bitcoin price failed to surpass the $59,500 resistance against the US Dollar. BTC is now trading below $58,000, but it is still above important supports such as $56,500.

  • Bitcoin failed to gain strength above the $59,200 and $59,500 resistance levels.
  • The price is now trading below the $58,250 support and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with support near $57,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to start a fresh increase as long as there is no close below $56,500.

Bitcoin Price Corrects Lower

Bitcoin climbed above the $59,000 level, but it failed to gain strength above the $59,200 and $59,500 resistance levels. BTC traded as high as $59,475 and recently started a downside correction.

It traded below the key $58,250 support level and $58,000. It even settled below the $58,000 level and the 100 hourly simple moving average. A low is formed near $57,250 and the price is now consolidating losses near $57,500.

It seems like there is a major contracting triangle forming with support near $57,400 on the hourly chart of the BTC/USD pair. An immediate resistance on the upside is near the $57,800 level. It is near the 23.6% Fib retracement level of the recent decline from the $59,475 swing high to $57,250 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

The first major resistance is near the $58,250 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $59,475 swing high to $57,250 low is also near $58,360.

A clear break above the $58,250 and $58,360 levels could open the doors for a steady increase. In the stated case, the price is likely to rise towards the $59,250 resistance.

Dips Limited in BTC?

If bitcoin fails to climb above $58,000 and $58,250, there could be more downsides. The first major support on the downside is near the $57,400 level and the triangle lower trend line.

A downside break below the triangle support could lead the price towards the main $56,500 support level. Any more losses might put a lot of pressure on the bulls in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $57,400, followed by $56,500.

Major Resistance Levels – $58,000, $58,250 and $59,200.

Publication date: 
04/07/2021 - 06:08
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.