Why Bitcoin Price Rally Could Extend To $60K, Uptrend Seems Intact

Bitcoin price gained bullish momentum above $50K and traded to a new all-time high at $57,500 against the US Dollar. BTC remains supported and it is likely eyeing a test of $60,000.

• Bitcoin climbed above the $50,000 resistance and traded to a new all-time high near USD 57,500.
• The price is trading nicely above the $55,000 level and the 100 simple moving average (4-hours).
• There is a key bullish trend line forming with support near $54,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair is showing a lot of positive signs and the bulls seems to eyeing a test of $60,000.

Bitcoin Price is Gaining Traction

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.

Technical indicators

4 hours MACD – The MACD for BTC/USD is showing positive signs in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 60 level.

Major Support Level – $52,500

Major Resistance Level – $60,000