Bitcoin Aims Fresh Run To $60K, Why Bulls Could Face Hurdles

Bitcoin is trading above the $56,200 support against the US Dollar. BTC must clear $58,500 to start a major increase in the coming sessions.

  • Bitcoin is struggling to gain pace above the $58,000 and $58,500 levels.
  • The price is still trading above $57,000 and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $58,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear the $58,500 resistance to start a steady increase in the near term.

Bitcoin Price is Showing Bullish Signs

Bitcoin price corrected lower below the $57,000 support level. However, BTC remained stable above the $56,200 support level and the 100 hourly simple moving average.

The recent low was near $56,555 and the price is now moving higher. It broke the $57,000 resistance zone. There was a break above the 23.6% Fib retracement level of the recent decline from the $59,230 swing high to $56,555 low.

It is still trading above $57,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $57,850 level. It is near the 50% Fib retracement level of the recent decline from the $59,230 swing high to $56,555 low.

The first major resistance is near the $58,200 level. There is also a major contracting triangle forming with resistance near $58,200 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A clear break above the $58,200 resistance zone could open the doors for more upsides. The next key resistance is near the $58,500 level, above which the bulls could aim a test of $60,000. Any more gains might push the price towards $61,200.

Fresh Drop In BTC?

If bitcoin fails to clear the $58,500 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $57,000 level.

The first major support is now forming near the $56,200 level and the 100 hourly SMA. A downside break below the $56,200 support may perhaps push the price towards $55,500. Any more losses might lead the price towards $55,000.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.

Major Support Levels – $57,000, followed by $56,200.

Major Resistance Levels – $58,000, $58,500 and $60,000.

Publication date: 
12/01/2021 - 03:08
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.