TA: Bitcoin Trims Gains, Here’s Why The Bulls Could Struggle Near $57K

Bitcoin price failed to continue higher towards $60,000 against the US Dollar. BTC declined sharply and tested the $54,500 support zone, where the bulls took a stand.

  • Bitcoin failed to extend gains and it formed a short-term top near the $59,000 level.
  • The price is now trading well below the $57,000 level and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $57,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct losses, but the bulls might face sellers near $57,000 and $57,400.

Bitcoin Price Corrects 4%

Bitcoin attempted more upsides above the $58,500 resistance level. BTC tested the $59,000 zone, but it failed to continue higher. A high was formed near $59,028 before it started a downward move.

The price broke the $58,000 and $57,000 support levels. There was a break below a major bullish trend line with support near $57,300 on the hourly chart of the BTC/USD pair. There was also a spike below the $55,000 support level.

It is now trading well below the $57,000 level and the 100 hourly simple moving average. A low is formed near $54,665 and the price is now attempting a recovery. Bitcoin broke the $55,500 resistance level. There was a break above the 23.6% Fib retracement level of the recent decline from the $59,028 high to $54,665 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

On the upside, an initial resistance is near the $56,800 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $59,028 high to $54,665 low is also near $56,800.

The main resistance is now forming near the $57,000 zone. A successful break above the $56,800 and $57,000 resistance levels could open the doors for a fresh move towards the $59,000 level.

More Losses in BTC?

If bitcoin fails to clear the $56,800 resistance, it could correct lower once again. An initial support on the downside is near the $55,000 level.

The first key support is near the $54,500 level and the recent low. A downside break below the $54,500 support might call for a drop towards the $52,000 support zone.

Technical indicators:

Hourly MACD – The MACD is slowly recovering and losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.

Major Support Levels – $55,000, followed by $54,500.

Major Resistance Levels – $56,800, $57,000 and $58,500.

Publication date: 
05/04/2021 - 05:48
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.