Bitcoin Corrected The Gains And Remains Attractive Near $54K

Bitcoin corrected the gains and it started a new increase near the $56,500 zone against the US dollar with the price now correcting the gains near the support of $54,000 as we can see more in today’s Bitcoin news.

Bitcoin traded as high as $56,694 before starting a new correction while the price is still above the $54,000 support and the 100 hourly simple moving average. There was a break below the key bullish trend line with the support near $55,500 on the hourly charts of the pair. The BTC/USD pair is likely to find a strong buying interest near the $54K support.  Breaking above $53,200 resistance means that BTC could extend its rise as it broke the $55K resistance and settled nicely above the 100 hourly simple moving average.

It spiked above the $56K and traded as high as $56,594 while now correcting lower and trading below the $56K range. There was another break below the 23.6% fib retracement level from the upwards move of $50,400 to the $56,694 high and another break below the bullish trend line near the $55,500 on the hourly charts of the pair. The pair will consolidate near the $55K level and the initial support on the downside will be set at $54,000. The first major support is close to the $54K zone and the 100 hourly simple moving average and new support are forming near the $53,500 level, close to the 50% fib retracement level from the move of $50,400 low to $56,694 high.

A downside break below these support levels could negate the bullish bias and in this case, the price will revisit $50,500. If BTC stays above the $54,000 support zone and the 100 hourly SMA, there are more chances of a fresh increase. The first major resistance is close to the $56,500 with the main resistance nearing the $57,000 and the $57,200 above which the price could spike higher. The hourly MACD is losing momentum in the bullish zone with the BTC/USD RSI is below the 50 level.

Also,  we saw that The former OCC head spoke about the speech of the Federal Reserve Head and stated that people chose to migrate to Bitcoin because of the risk of inflation. Fed Chairman, claimed that BTC is a good substitute for gold but his statements were contradictory because the precious metal is not a store of value.