Bitcoin lacks the momentum above $ 56,000 why the rally isn’t over yet

Bitcoin is showing positive signs above $ 54,000 against the US dollar. BTC could accelerate higher if there is a clear break above the USD 56,000 resistance zone.

  • Bitcoin remains well supported above the $ 54,500 mark.
  • The price is now trading above $ 55,000 and the 100-hour simple moving average.
  • A major bearish channel is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 55,650.
  • The pair could start a new rally if there is a clear break above the USD 56,000 resistance.

Bitcoin price remains on the uptrend

Bitcoin price remained in positive territory, climbing above the USD 55,000 resistance. BTC even broke the $ 56,000 resistance level and settled above the 100-hour simple moving average.

However, the price failed to gain strength above the $ 56,000 zone. A high was formed at $ 56,500 before a downward correction. The price corrected down below the $ 56,000 level. The price even traded below the $ 55,000 mark and climbed below the 100-hour SMA.

Bitcoin found support at $ 54,500 and a low was made at $ 54,396. The price is now rising and trading above the $ 55,500 mark. There was a break above the 23.6% fib retracement level of the recent decline from the $ 56,500 swing high to the $ 54,396 low.

It is now facing resistance near the $ 55,500 mark. A major declining channel is also forming on the hourly chart of the BTC / USD pair with resistance near USD 55,650. Channel resistance is near the 50% fib retracement level of the recent drop from the high of $ 56,500 to the low of $ 54,396.

Source: BTCUSD on TradingView.com

The main resistance is forming near the $ 56,000 zone, above which the price could accelerate higher. The next major resistance is near the $ 57,200 mark. Further gains could set the pace for a move towards the $ 58,000 mark.

Dips supported in BTC?

If Bitcoin fails to break the USD 56,000 resistance zone, it could be corrected downwards. Immediate support on the downside is near the $ 55,000 mark.

The first major support is now forming near the $ 54,500 mark. The next big support is near the $ 54,000 mark, below which there is a risk of a major decline.

Technical indicators:

Hourly MACD – The MACD is slowly picking up pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now above the 50 mark.

Major Support Levels – $ 54,500, followed by $ 54,000.

Main Resistance Levels – $ 55,500, $ 55,650, and $ 56,000.

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