Bitcoin corrects lower, why this indicator holds the key

[ad_1]

Bitcoin has started a downward correction from the $ 57,800 area against the US dollar. BTC needs to stay above the 100 hour SMA to initiate further near-term rise.

Bitcoin corrected below the pivot level of $ 57,000. The price is now trading above $ 56,000 and the 100 hour simple moving average. A major bullish trendline is forming with support near $ 55,200 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair could start a further rise if it clears the resistance area of ​​$ 57,000. Bitcoin price remains supported

The price of Bitcoin extended its rise above the pivotal level of $ 57,000. BTC even broke through the $ 57,500 level and settled above the 100-hour simple moving average.

However, price struggled to extend gains above the $ 58,000 level. It traded at $ 57,837 and was recently corrected lower. There was a break below the $ 57,000 level. The price even climbed below the $ 56,000 level and the 100-hour SMA.

Bitcoin has found support near $ 54,019 and has recently started an uptrend. It climbed above the $ 55,000 level. There was a break above the 50% fiber retracement level of the recent decline from a high of $ 57,837 to a low of $ 54,019.

It is now trading above $ 56,000 and the 100 hour simple moving average. A major bullish trendline is also forming with support near $ 55,200 on the hourly chart of the BTC / USD pair.

On the upside, the bulls are facing resistance near the $ 56,350 level. It is near the 61.8% Fib retracement level of the recent decline, falling from a high of $ 57,837 to a low of $ 54,019. The first key resistance is near the $ 57,000 level and a connected downtrend line on the same chart.

Source: BTCUSD on TradingView.com

A clear break above the resistance of $ 57,000 could open the door for a further rise. The next major resistance is near the $ 58,000 level.

Dips supported in BTC?

If bitcoin fails to clear the $ 57,000 resistance zone, it could correct lower again. Immediate downside support is near the $ 56,000 level.

First major support is now forming near the $ 55,900 level and 100 hour SMA. A break down below the 100 hour SMA could push the price towards the support area of ​​$ 54,000 in the near term.

Technical indicators:

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

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

Major support levels $ 56,000, followed by $ 55,900.

Major resistance levels $ 56,350, $ 57,000 and $ 58,000.

[ad_2]