Bitcoin price starts recovery
Bitcoin price formed a bottom above the $60,000 area. BTC remained stable and was able to start a sharp increase above the $61,500 resistance area.
There was a break above a major bearish trend line with resistance at $61,000 on the hourly chart of the BTC/USD pair. The bulls were able to push the price above the $62,500 resistance. The price is currently up nearly 5% and it is trading close to the $63,650 resistance.
Bitcoin price is currently trading above $62,500 and the 100 hourly simple moving average. The price is stable and well above the upside 23.6% Fibonacci retracement level of the move from the $59,949 swing low to $63,675 high.
If there is another increase, the price is likely to face resistance near $63,650. The first key resistance is near $64,000. The next key resistance is likely to be $64,400. If there is a clear break above the $64,400 resistance level, a steady increase might start and push the price higher.
In the above case, the price might increase and test the $65,500 resistance level. If the price rises further, it might push BTC towards the $66,000 resistance level in the near term.
Is the downside of BTC limited?
If Bitcoin fails to break above the $63,650 resistance zone, a downside correction might start. An immediate support on the downside is near $62,800.
The first major support is $61,800, which is also the 50% Fibonacci retracement level of the upward move from the $59,949 swing low to $63,675 high. The next support is currently formed near $61,250, and the 100 hourly simple moving average. If the price declines further, it might drop towards the $60,500 support area in the near term.
Technical Indicators:
Hourly MACD – The MACD is currently accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support level – $62,800, followed by $61,800.
Major resistance levels – $63,650 and $64,400.
