Bitcoin Price Gains Strength: 100 SMA Crucial for Sustained Gains

7 August 2024

Bitcoin price started a recovery wave above the $55,000 resistance. BTC must clear the 100 hourly SMA to continue higher in the near term.

Bitcoin started a recovery wave above the $53,500 and $55,500 levels.
The price is trading below $58,000 and the 100 hourly Simple moving average.
There is a contracting triangle forming with resistance at $57,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might struggle to clear the $58,000 resistance zone.

Bitcoin Price Gains Over 85

Bitcoin price formed a base and started a recovery wave above the $52,500 resistance zone. BTC was able to clear the $53,500 and $55,500 resistance levels.

There was a move above the 61.8% Fib retracement level of the downward wave from the $61,040 swing high to the $49,110 swing low. The bulls even managed to push the price above the $56,500 resistance zone. However, the bears might remain active near $58,000.

Bitcoin price is still trading below $58,000 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $57,500 level. There is also a contracting triangle forming with resistance at $57,500 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $58,250 level or the 76.4% Fib retracement level of the downward wave from the $61,040 swing high to the $49,110 swing low.

A clear move above the $58,250 resistance might send the price further higher in the coming sessions. The next key resistance could be $59,200. The next major hurdle sits at $60,000. A close above the $60,000 resistance might spark bullish moves. In the stated case, the price could rise and test the $62,000 resistance.

Another Drop In BTC?

If Bitcoin fails to recover above the $58,250 resistance zone, it could start another decline. Immediate support on the downside is near the $56,000 level.

The first major support is $55,000. The next support is now near $53,500. Any more losses might send the price toward the $52,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace 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 $55,000.

Major Resistance Levels – $57,500, and $58,250.

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