TA: Bitcoin Forms Bullish Pattern, Why BTC Could Climb Above $58K

Bitcoin price started a fresh increase after a drop towards $53,000 against the US Dollar. BTC is now forming an inverse head and shoulders, with chances of a break above $58,000.

• Bitcoin is showing positive signs above the $55,000 support zone.
• The price is now facing resistance near $58,000 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $58,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely setting up for an upside break above the $58,000 resistance.

Bitcoin Price is Recovering

After a sharp decline, bitcoin found support above the $53,000 level. BTC traded as low as $53,222 and recently started a fresh increase. It cleared the $54,200 and $55,000 resistance levels.

There was a recovery above the 23.6% Fib retracement level of the downward move from the $61,695 high to $53,220 low. The price even climbed above the $56,000 level. However, the price is facing resistance near $58,000 and the 100 hourly simple moving average.