Bitcoin dropped to lows of $56,275 before a slight recovery sent it above $58k

Bitcoin price has moved above $58,000 once again, retesting resistance near $58,500. The upside follows the corrective pullback witnessed on Thursday and early Friday that had seen BTC price slip from highs of $60,000 to lows of $56,275.

At the time of writing, Bitcoin is trading around $58,068 and is looking for a fresh assault at the critical $58.5k barrier. But bears are also trying to lay claim to momentum, which has seen prices hemmed between $58,500 and $57,600.

If bulls take charge going into the weekend, Bitcoin price could pierce the $60k ceiling and look for fresh highs near $62,000. The bullish view could invalidate if prices break below intraday lows and punctures the critical support level of $55,000.

Bitcoin price outlook

The technical picture for BTC/USD suggests bulls could push towards the $60,000 resistance level if they hold above $58,000. The hourly RSI is above the midpoint at 53, while the hourly MACD suggests a bullish flip as it looks to strengthen above the signal line.

If the uptrend resumes, the initial resistance remains at the $58,500 level. A clear breach of this hurdle will likely aid the upside momentum to $59,000. Here the 0.236 Fibonacci retracement level of the move from $60,089 high to $56,275 low offers minor resistance.

A clear break above $59k would allow bulls to target the round figure ceiling at $60k, with further gains likely to see BTC/USD retest the all-time high levels at $61,683.

BTC/USD hourly chart. Source: TradingView

On the downside, BTC/USD is struggling to retain the upside momentum above $58,000. The cryptocurrency is seeing increased sell orders near the 0.5 Fib level ($58,182), with a fresh downward correction likely to push prices past the 0.618 Fib level ($57,732).

The next cushion is at the 100 SMA ($56,780), which could open up a path for sellers to revisit intraday lows of $56,275.

If bears succeed in pushing prices below the $56,000 support level, it’s possible that BTC may decline to the 1.272 Fib level ($55,237). In the event bulls fail to stem the rot at the $55k level, the next target on the downside would be $54,000 (the 1.618 Fib level is at $53,918) and then the zone near $53,000.

This post was originally published on Coinjournal.