Key Takeaways:
- Bitcoin is attempting a recovery wave from the $53,800 support zone.
- BTC/USD is approaching a key bearish trend line with resistance at $60,000 on the daily chart.
- The price could face hurdles near the trend line and the 50-day simple moving average (blue).
Bitcoin price is recovering higher above $57,500. BTC must settle above $60,000 and the 50-day simple moving average (blue) to gain bullish pace.
Bitcoin Price Faces Uphill Task At $60K
In the past few days, Bitcoin price saw a recovery wave from the $52,756 low. BTC reclaimed the $53,800 pivot level and was able to climb above the $55,000 resistance zone. The last 5-6 daily candles were positive above the $55,000 level.
There was a decent upward move above the 23.6% Fib retracement level of the downward move from the $65,200 swing high to the $52,756 low. However, the price is still well below the $60,000 handle and the 50-day simple moving average (blue).
Bitcoin price might extend gains above the $58,500 resistance zone. An immediate hurdle above $58,500 could be the 50% Fib retracement level of the downward move from the $65,200 swing high to the $52,756 low at $59,000.
The first major resistance is now forming near the 50-day simple moving average (blue) at $60,000. There is also a key bearish trend line forming with resistance at $60,000 on the daily chart.
To start a steady increase, BTC price must settle above the trend line resistance and the 50-day simple moving average (blue). In the stated case, the bulls might target a test of the $62,250 resistance zone. The next key resistance is near the $65,000 level, above which Bitcoin might accelerate higher toward the main trend line resistance at $68,000.
Recently, the US CPI report for August 2024 was released. It showed that inflation rose 2.5% on an annual basis, down from 2.9%. It suggests that the chance of a rate cut by the Fed for next week increased and could help Bitcoin and other cryptocurrencies such as Ethereum to recover some lost ground.
Another Rejection and Decline In BTC?
Conversely, Bitcoin price might struggle near $59,000 or $60,000 and start another decline. Immediate support on the downside is near the $56,650 level. The first major support is near the $55,000 level.
A downside break below the $55,000 support zone could spark more bearish moves. In the stated case, the price might decline toward the $53,800 support. Any more losses could open the doors for a move toward the key support at $50,000 in the coming days.
Overall, Bitcoin is recovering losses above the $55,000 zone. Having said that, BTC could face heavy resistance near the $60,000 level and might face rejection.
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