Bitcoin price spiked above the $56,000 resistance against the US Dollar, but it failed to continue higher. BTC is could correct lower, but the 100 hourly SMA is likely to provide support.

• Bitcoin extended its rise above the $55,500 and $56,000 resistance levels.
• The price is now trading well above $54,000 and the 100 hourly simple moving average.
• There is a key bullish trend line forming with support near $54,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could dip towards the $53,000 support before it extends its rise.

Bitcoin Price Remains Supported

Bitcoin remained stable above the $53,000 support zone and it extended its upward move. BTC broke the $55,000 resistance level and it settled well above the 100 hourly simple moving average.

The price even spiked above the $56,000 resistance level. However, the bulls failed to push the price above the $56,500 level. A high is formed near $56,490 and the price is now correcting lower. It broke the $56,000 and $55,800 levels. Bitcoin almost tested the 23.6% Fib retracement level of the recent upward wave from the $47,010 swing low to $56,490 high. There is also a key bullish trend line forming with support near $54,500 on the hourly chart of the BTC/USD pair.

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If the pair breaks the trend line support, it could extend its decline towards the $53,000 support. The 100 hourly simple moving average is near the $53,000 zone to act as a strong support.

Any more losses might call for a test of the $51,500 support. The 50% Fib retracement level of the recent upward wave from the $47,010 swing low to $56,490 high is also near the $51,750 zone.

Fresh Increase in BTC?

If bitcoin remains stable above the 100 hourly SMA and the $53,000 support, it could start a fresh increase. An initial resistance on the upside is near the $55,500 level. The next major resistance is near the $56,000 level. A successful close above the $56,000 resistance zone could set the pace for a move towards the $58,000 level in the near term. Technical indicators: Hourly MACD – The MACD is now losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just above the 50 level. Major Support Levels – $54,500, followed by $53,000. Major Resistance Levels – $55,000, $55,500 and $56,000.