FX.co ★ Bitcoin remains on track to our short-term $63,000 target.

Bitcoin is trading around $58,000 and price is forming higher lows. Price has potential to push towards $63,000 where we find important Fibonacci resistance. Since bottoming around $53,000, we mentioned that it was time for Bitcoin to move higher or at least make a short-term bounce towards $63,000.

Black lines - Fibonacci retracements

Blue lines -bullish divergence

Yellow rectangle - resistance

Blue rectangle- target if short-term resistance is broken

The RSI provided us with the first reversal warning. Price bounced initially towards the 38% Fibonacci retracement and now it is time for a move towards the 61.8% level. Resistance is at recent highs at the 38% Fibonacci level and breaking above it will be another bullish signal that will push price towards the 61.8% level. The bullish RSI divergence made us confident of a possible reversal and we are now on top of that reversal. Support is found at $56,000 and next at $53,000. Bulls do not want to see price break below $53,000.