- Bitcoin traded as high as $56,694 before starting a downside correction.
- The price is still above the $54,000 support and the 100 hourly simple moving average.
- There was a break below a key bullish trend line with support near $55,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to find a strong buying interest near the $54,000 support zone in the near term.
Bitcoin Price Remains Supported
It even spiked above $56,500 and traded as high as $56,694. It is now correcting lower and trading below the $56,000 level. There was a break below the 23.6% Fib retracement level of the upward move from the $50,400 swing low to $56,694 high.
Source: BTCUSD on TradingView.com
An initial support on the downside is near the $54,500 level. The first major support is near the $54,000 zone and the 100 hourly simple moving average. The next major support is near the $53,500 level. It is close to the 50% Fib retracement level of the upward move from the $50,400 swing low to $56,694 high.
A downside break below the $53,500 and $53,200 support levels could negate the current bullish bias. In the stated case, the price is likely to revisit $50,500.
Fresh Increase in BTC?
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.
Major Support Levels – $54,500, followed by $54,000.
Major Resistance Levels – $56,000, $56,500 and $57,200.