This past week, bitcoin price extended its rise above the key $50,000 resistance zone against the US Dollar. The BTC/USD pair even broke the $55,000 level and settled well above the 100 simple moving average (4-hours).
It traded to a new all-time high near $57,500 and recently started a downside correction. There was a sharp dip below the $56,000 and $55,000 levels. The price broke the 23.6% Fib retracement level of the upward move from the $50,634 swing low to $57,500 high.
However, the bulls were active near the $54,000 support level. The 50% Fib retracement level of the upward move from the $50,634 swing low to $57,500 high also acted as a decent support.
There is also a key bullish trend line forming with support near $54,000 on the 4-hours chart of the BTC/USD pair. The pair is also recovering and trading nicely above $55,000. An initial resistance is near the $57,000 level. The first major resistance is near the $57,500 high.
A clear break above the $57,500 resistance is likely to open the doors for more upsides. The next major resistance for the bulls sits at $60,000.
Dips Supported in BTC?
If bitcoin struggles to clear the $57,500 resistance level, there are chances of a downside correction. The first major support is near the trend line and $54,000.
The next major support is near the $52,500 level (a multi-touch zone). If there is a clear break and close below the $52,500 support, the price could decline towards the $50,000 level in the near term.