Bitcoin holds firm, here’s a key resistance turned support

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Bitcoin extended its rally above $ 57,000 against the US dollar. BTC could continue to rise if it breaks above the $ 56,000 support area.

Bitcoin is trading in a positive area above the $ 56,000 support area. The price is now trading above $ 56,000 and the 100 hour simple moving average. There was a break above a key bearish channel with resistance near $ 55,400 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair corrects its gains, but the bulls could remain active near $ 56,000. Bitcoin price sees more benefits

The price of Bitcoin has remained well supported above the pivotal level of $ 55,000. BTC gained momentum and broke through many hurdles near the $ 55,500 level.

There was also a break above a key bearish channel with resistance near $ 55,400 on the hourly chart of the BTC / USD pair. The pair broke through the resistance level of $ 56,000 and stabilized above the 100 hour simple moving average.

There was also a break above the $ 57,000 level and the price traded up to $ 57,837. It is now correcting lower and trading below $ 57,500.

There was a break below the 23.6% Fib retracement level of the bullish move from the low of $ 54,396 to $ 57,837. On the downside, initial support is near the $ 56,200 level. On the upside, the bulls are facing resistance near the $ 57,000 level.

Source: BTCUSD on TradingView.com

The first key resistance is near the $ 57,500 level. A clear break above the resistance of $ 57,500 could open the door for a decent increase. The next major resistance is near the $ 58,500 level. Further gains could set the tone for a move towards the $ 59,200 level.

Dips supported in BTC?

If bitcoin fails to clear the $ 57,500 resistance zone, it could correct to the downside. Immediate downside support is near the $ 56,200 level.

The first major support is snow formation near the $ 56,000 level. It is near the 50% Fib retracement level of the upward movement, dropping from the low of $ 54,396 to $ 57,837. A break down below the $ 56,000 support area could open the door for a deeper drop.

Technical indicators:

Hourly MACD The MACD is slowly accelerating in the bearish zone.

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

Major support levels $ 56,200, followed by $ 56,000.

Major resistance levels $ 57,000, $ 57,500 and $ 58,500.

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