Bitcoin has embarked on a recovery journey after dipping to around $55,600. However, it is currently facing challenges in its attempt to break through the resistance at $58,500, which could lead to a subsequent decline.
The price of Bitcoin is hovering below the $58,200 level and the 100-hour Simple Moving Average, indicating ongoing selling pressure. An upward trend line suggests support around $57,250. Despite recently moving past the critical levels of $56,500 and $57,000, Bitcoin ’s efforts have been stymied by sellers near the $58,500 resistance.
After reaching a low of $55,591, Bitcoin has made some progress in regaining lost ground, having surpassed the halfway retracement of the recent downward trend. Now, it must contend with resistances located at $58,500 and $58,750. Successfully breaking through the latter could facilitate further gains. Should Bitcoin regain momentum beyond $59,500, it may be on track to challenge the psychological level of $60,000.
Conversely, if Bitcoin fails to sustain its upward trajectory and break the $58,500 barrier, it may revisit its downward trend. Immediate support is identified at $57,250, while more significant levels of support lie at $56,850 and $56,200. Any substantial decline could expose Bitcoin to potentially testing the $55,500 level once again.
In analyzing Bitcoin ’s technical indicators, the hourly MACD is beginning to show signs of waning strength in the bullish area, and the Relative Strength Index is hovering around the neutral 50 zone. The ongoing battle between support at $57,250 and resistance at $58,500 will be crucial in determining Bitcoin ’s short-term trajectory.
