Bitcoin price started a decent increase above the $56,000 resistance against the US Dollar. BTC is showing positive signs and it could aim a break above $58,000.Bitcoin formed a support above $54,000 and it recovered above the $56,000 zone.The price is now trading above the $56,000 level and the 100 hourly simple moving average.There was a break above a major bearish trend line with resistance near $54,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair traded as high as $57,994 and it is now correcting gains.Bitcoin Price is Showing Positive SignsBitcoin remained well bid above the $54,000 support zone. As a result, BTC started a fresh increase above the $55,500 and $56,000 resistance levels.There was a clear break above a major bearish trend line with resistance near $54,850 on the hourly chart of the BTC/USD pair. The pair even climbed above the $57,000 level and it settled nicely above the 100 hourly simple moving average.
It tested the $58,000 resistance zone and a high is formed near $57,994. The price is now correcting lower and trading below $57,500. It is testing the 23.6% Fib retracement level of the recent wave from the $52,957 swing low to $57,994 high.
There is also a declining channel or a bullish flag forming with support near $56,600 on the same chart. The 100 hourly simple moving average is also near the channel support.
On the upside, the price is facing resistance near the channel trend line at $57,600. If there is an upside break above the trend line resistance, bitcoin price could clear the $58,000 resistance. The next key resistance is near the $60,000 level.Fresh Drop in BTC?If bitcoin fails to clear the $57,600 resistance or $58,000, it could start a fresh decline. An initial support on the downside is near the $56,600 level and the channel zone.The first key support is near the $56,250 level, below which the price might test $55,500. It is near the 50% Fib retracement level of the recent wave from the $52,957 swing low to $57,994 high.
Technical indicators:Hourly MACD – The MACD is showing positive signs and it could gain in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.Major Support Levels – $56,600, followed by $55,500.Major Resistance Levels – $57,600, $58,000 and $60,000.