Bitcoin (BTC) is bouncing back after hitting a monthly low of $55,500, climbing over 5% in the last three days. Currently trading around $56,740, this price surge has reignited interest, with trading volume up by 86%. BTC is approaching key resistance at $58,000, which could signal a continued uptrend.

Technically, BTC is showing positive signs despite trading below the 200 EMA. A bullish divergence on the RSI suggests potential further gains, with the possibility of hitting $62,000 based on past price patterns.

On-chain data supports this outlook, with BTC’s Long/Short ratio at 1.095, signaling a bullish preference. However, key liquidation levels are near $55,900 and $57,000, making these crucial levels to watch.