Bitcoin price has recovered above the $62,000 resistance area. BTC needs to clear the $62,500 resistance area to continue higher in the near term.
- Bitcoin started a wave of recovery above the $61,500 and $62,000 levels.
- The price is trading below $63,000 with a simple 100 hourly moving average.
- There is a major bearish line forming with resistance at $62,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may struggle to rise above the $62,500 and $63,000 resistance levels.
Bitcoin Price Faces Resistance
Bitcoin price extended losses below the $60,000 support area. BTC even tested the support area of $58,500, where the bulls appeared. A low was formed at $58,448 and the price is now recovering losses. There was a nice rise above the $60,000 level.
The price rose above the 50% Fib retracement level of the downward wave from the $64,460 swing high to the $58,448 low. It even moved above the $62,000 pivot level. However, Bitcoin price is still trading below $63,000 and the 100 hourly moving average.
The price seems to be facing a rejection zone near the $62,500 resistance, as discussed yesterday. There is also a key bearish line forming with resistance at $62,500 on the hourly chart of the BTC/USD pair. It is near the 61.8% Fib retracement level of the downward wave from the $64,460 swing high to the $58,448 low.
The next key resistance would be $63,000. A clear move above the $63,000 resistance could start a further uptrend and send the price higher. In the mentioned case, the price can rise and test the resistance of $ 63,500. Any further gains could send BTC to the $65,000 resistance in the near term.
Another Decline in BTC?
If Bitcoin fails to rise above the $62,500 resistance area, it could start another decline. Immediate support on the downside is near the $60,500 level.
The maximum initial support is $60,000. The next support now forms around $59,500. Another loss could send the price to the $58,500 support area in the near term.
Technical indicators:
Hourly MACD – MACD is now gaining momentum in bullish territory.
Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now above the 50 level.
Major Support Levels – $60,500, followed by $60,000.
Large Objection Levels – $62,500, and $63,000.
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