- Bitcoin bounces off ascending channel support to step above $55,500 in the short term.
The short-term technical picture improves as bulls target highs above the middle hurdle and 100 SMA.
Bitcoin extended the bearish action significantly following the rejection at $55,000. Tentative support at $54,000 failed to stop the sellers’ advances, allowing the price to explore lower leeks around the 50 Simple Moving Average (SMA) on the four-hour chart. BTC trades at $53,633 at the time of writing amid a bullish building momentum.
Bitcoin renews the uptrend as $60,000 calls
The flagship cryptocurrency is dancing within the confines of an ascending parallel channel. The 50 SMA has provided immediate support in conjunction with the channel’s lower edge.
On the upside, bulls look forward to trading above the stubborn resistance at $55,500. Moreover, a step into the upper layer of the channel would trigger massive gains. Support at the middle boundary would be crucial to nurturing the uptrend toward $60,000. On the other hand, Bitcoin must also bring down the resistance at the 100 SMA to pave the way for the much-anticipated gains.
It is worth noting that the upswing to $60,000 may fail to occur based on the resistance highlighted by IntoTheBlock’s IOMAP chart. For instance, the most robust seller congestion zone runs from $53,687 to $55,264. Here, 1.26 million addresses previously bundled up around 705 BTC. It will likely be challenging to trade above this hurdle.
On the downside, Bitcoin is sitting on relatively weaker support areas. However, the model directs attention to the region between $48,829 and 50,469. Here, roughly 882,000 addresses previously purchased nearly 468,000 BTC. If overhead pressure intensifies, Bitcoin will slice through this zone to explore lower price levels.
Bitcoin intraday levels
Spot rate: $53,633
Trend: Bullish
Volatility: Growing
Support: 50 SMA and $47,000
Resistance: $55,000 and $57,500
