At the time of writing, Bitcoin, was down by 0.72% to $56,944.
A bullish start to the day saw Bitcoin rise to an early morning high $58,294 before sliding to a late morning low $56,764.
While falling short of the first major resistance level at $58,731, Bitcoin also avoided the first major support level at $54,720.
For the Afternoon Ahead
Bitcoin would need to continue to avoid the $56,094 pivot to bring the first major resistance level at $58,731 back into play.
Support from the broader market would be needed for Bitcoin to break out from $58,500 levels.
Barring an extended rally, the first major resistance level should limit the upside.
In the event of a broad-based crypto rally, Bitcoin could test resistance at $60,000 before any pullback. The second major resistance level sits at $60,105.
A fall through the $56,094 pivot would bring the first major support level at $54,720 into play.
Barring an extended sell-off through the afternoon, however, Bitcoin should steer clear of the second major support level at $52,083. The 23.6% FIB of $53,628 should limit the downside.
Looking beyond the major support and resistance levels, we saw the 50 EMA converge on the 100 EMA in the late morning. We also saw the 100 EMA narrow on the 200 EMA, providing further late morning support.
A bullish cross of the 50 EMA through the 100 would bring $60,000 levels into play.
For the bulls, a breakout from $58,500 would be key, however, to avoid an afternoon sell-off.
This article was originally posted on FX Empire