Bitcoin Holds above $58,000 Support as Bulls Initiate a New Uptrend

Today, Bitcoin (BTC) is consolidating above $58,000 support after being rejected at the $64,000 resistance zone. This resistance has caused the price to fall and break the $60,000 psychological price level.

Breaking this key support could drive the cryptocurrency further down. That is, BTC/USD could fall to a low of $51,000. However, if the support at $58,000 holds, it would be a sign of resumption of upward momentum. The bulls will likely push the cryptocurrency to retake the previous highs of $64,000 and $67,000. Breaking these resistance levels will push Bitcoin to trade above the $70,000 price level. Bitcoin is still holding above $58,000 support for a possible upside move.

Bitcoin indicator reading

BTC price has fallen to the 53 level on the Relative Strength Index for period 14. Bitcoin is in the uptrend zone and above the 50 midline, it has enough room to recover to the upside. The cryptocurrency has fallen into oversold territory and is above the 20% area of the daily stochastic. Buyers are expected to emerge to push prices higher.

Technical indicators:  

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

Major Support Levels - $60,000 and $55,000

What is the next direction for BTC/USD?

On the 4-hour chart, Bitcoin is in a downtrend as the price has fallen below the moving averages. BTC/USD has fallen to support at $58,000. The downtrend will continue if Bitcoin loses the $58,000 support. Meanwhile, the October 22 uptrend has a retraced candlestick that tested the 50% Fibonacci retracement level. The retracement suggests that BTC is likely to fall to the 2.0 Fibonacci extension level or $52,902.10. The price action indicates that BTC is likely to rise back above the $58,000 support. This could invalidate the bearish scenario.

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.