TA: Bitcoin Corrects Gains, Why BTC Remains Attractive Near $54K

Aayush Jindal

Last Updated: June 11, 2024 2:14 pm

2 mins read

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Bitcoin price started a steady increase and tested the $56,500 zone against the US Dollar. BTC is now correcting gains, with many supports near $54,000.

Bitcoin traded as high as $56,694 before starting a downside correction.
The price is still above the $54,000 support and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $55,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to find a strong buying interest near the $54,000 support zone in the near term.

Bitcoin Price Remains Supported

After a clear break above the $53,200 resistance, bitcoin extended its rise. BTC broke the $55,000 resistance level and settled nicely above the 100 hourly simple moving average.

It even spiked above $56,500 and traded as high as $56,694. It is now correcting lower and trading below the $56,000 level. There was a break below the 23.6% Fib retracement level of the upward move from the $50,400 swing low to $56,694 high.

There was also a break below a key bullish trend line with support near $55,500 on the hourly chart of the BTC/USD pair. The pair is now consolidating near the $55,000 level.

Source: BTCUSD on TradingView.com

An initial support on the downside is near the $54,500 level. The first major support is near the $54,000 zone and the 100 hourly simple moving average. The next major support is near the $53,500 level. It is close to the 50% Fib retracement level of the upward move from the $50,400 swing low to $56,694 high.

A downside break below the $53,500 and $53,200 support levels could negate the current bullish bias. In the stated case, the price is likely to revisit $50,500.

Fresh Increase in BTC?

If bitcoin stays above the $54,000 support zone and the 100 hourly SMA, there are chances of a fresh increase. An initial resistance on the upside is near the $56,200 zone.

The first major resistance is near the $56,500 level. The main resistance is still near $57,000 and $57,200, above which the price is likely to rally further.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.

Major Support Levels – $54,500, followed by $54,000.

Major Resistance Levels – $56,000, $56,500 and $57,200.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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