Bitcoin price failed to continue higher above $60,800 and corrected lower against the US Dollar. BTC is now holding gains and it is likely to rally above $61,000 unless there is a break below the 100 hourly SMA.

• Bitcoin is struggling to gain momentum above the $60,000 and $60,500 levels.
• The price is now trading above the $59,000 level and the 100 hourly simple moving average.
• There is a major contracting triangle forming with resistance near $60,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to start a major rally once it clears the $60,050 and $60,500 levels.

Bitcoin Price is Holding Gains

Bitcoin dipped sharply towards the $58,000 support after it was rejected above $60,500. However, BTC remained well bid above the $58,000 zone and it recovered losses.

There was a break above the $59,000 level and the price even climbed above $60,000. A high is formed near $60,677 and the price is currently consolidating. It traded below the 23.6% Fib retracement level of the upward move from the $58,025 low to $60,677 high. On the downside, the price is finding bids near the $59,250 and $59,100 levels. The 50% Fib retracement level of the upward move from the $58,025 low to $60,677 high is also near the $59,350 level.

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There is also a major contracting triangle forming with resistance near $60,050 on the hourly chart of the BTC/USD pair. If there is an upside break above the $60,050 and $60,200 levels, there are high chances of a fresh rally. In the stated case, the price is likely to surge towards the $61,200 and $62,000 levels in the near term.

Dips Supported in BTC?

If bitcoin fails to climb above $60,050 and $60,200, there could be a short-term downside correction. An initial support on the downside is near the $58,350 level.

The next major support is near the triangle at $58,750 and the 100 hourly simple moving average. If the bulls fail to protect the 100 hourly SMA, there could be a sharp downside break. In the stated case, the price might decline towards the $56,800 level in the near term.

Technical indicators: Hourly MACD – The MACD is now losing momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level. Major Support Levels – $59,350, followed by $59,000. Major Resistance Levels – $60,050, $60,500 and $61,200.