Bitcoin Breaches $56,000 Resistance, Larger Uptrend Is Still Intact

The price of Bitcoin (BTC) resumed a new uptrend today after rising above $56,000 resistance. This means that Bitcoin is likely to rise to the psychological price level of $60,000.

However, the uptrend could face resistance at the $58,897 high. The high of $58,897 is the historical price level from May 8. Since May 8, the BTC price has not been able to rise above $58,897. Today, BTC/USD will make another move when it breaks out above the historical price levels of $58,897 and $63,537. At the time of writing, the cryptocurrency is nearing the high at $56,654, but if the current uptrend is broken and the price falls below the support at $56,000, the market will likely fall. The bears will push bitcoin to the lows of $54,000 and $52,590.

Bitcoin indicator reading

BTC price has continued to rise despite the cryptocurrency's overbought condition. The market has risen to level 69 on the Relative Strength Index for period 14. Bitcoin is still trading in the overbought territory. It is also above the 80% area of the daily stochastic. The stochastic bands fluctuate as the price rises and falls.

Technical indicators:

Major Resistance Levels - $65,000 and $70,000

Major Support Levels - $50,000 and $45,000

What is the next direction for BTC/USD?

On the 4-hour chart, the BTC price has broken above the $56,000 resistance level. The market is rising and approaching the previous resistance at $58,897. Meanwhile, the uptrend from October 7 has a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that the BTC price will fall and reverse at the 1.272 extension level or $57,782.30.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.