Bitcoin price rebounded from support near $56,500 and could push higher toward $60,000
Over the weekend, Bitcoin (BTC) dropped to $56,487 after bulls failed to sustain the April 2 rally. Having reached highs of $60,066 on Friday, BTC suffered a sharp pullback that broke the key $58,000 support. The negative price action pushed sellers to revisit the critical $56,000 area, with some exchanges reporting prices as low as $56,450.
The leading cryptocurrency, which has held a market capitalization around $1 trillion for more than a week, has bounced in the past 24 hours. Prices are now above $58,500 and could retest $60,000 if bulls keep the upper hand over the coming days.
Why Bitcoin’s price could surge
Market sentiment around Bitcoin is bullish, and recent data indicate the cryptocurrency may be setting up for another rally.
Glassnode’s “Week on Chain” report published yesterday suggests Bitcoin could move higher based on its performance over the last ten days. According to the analytics platform, BTC maintaining a $1 trillion market cap for ten consecutive days “is a strong vote of confidence for Bitcoin and the crypto asset class as a whole.”
Notably, bulls have been active on every dip since prices broke above $50,000. That buying has created a strong support level, with miners accumulating significantly, which points to a potential price recovery. Institutional buying has also continued; MicroStrategy recently added $15 million of BTC to its holdings.
Data from Santiment show call option interest reached a three-week high, implying the potential for renewed gains similar to the move on March 13.
“Bitcoin has bounced back above $59,000, and polarized sentiment has peaked. The debate is heating up over another #ATH approaching. #Calls are at their highest level in 3 weeks, and the last time mentions were this high was just hours before the #ATH on March 13,” Santiment noted.
Technical outlook for Bitcoin price
BTC/USD is trading below a horizontal resistance line that capped the recent rebound near $59,500. Prices slipped below the 23.6% Fibonacci retracement of the $56,700 to $59,457 move. While the MACD is rising in bearish territory, the hourly RSI remains above 50, suggesting the pair may consolidate between roughly $58,200 and $58,800.
At present, bulls are trying to keep prices above the 100-period SMA on the hourly chart (about $58,518). This level is also close to a crucial horizontal support zone at $58,500, where buyers are likely to step in and attempt to push toward $60,000. A decisive move above that area could open the path to new highs beyond $62,000.
A bearish scenario would unfold if sellers regain control around the 50% Fib level at $58,117. Further losses could take the pair down to $57,500 and then toward the $56,000 support zone.