Bitcoin Recovers Above the $50,000 Psychological Price Level but Struggles In The Bearish Trend Zone
Bitcoin price has been recovering after falling to the low of $47,500 for the past four days. BTC/USD consolidated above the current support and retested it before resuming upward.
Today; it is trading marginally as it reached a high of $53,461. Sellers have resumed price tussle at the recent high. Nonetheless, if buyers break the current resistance and push the BTC price above the $58,000 support, Bitcoin will resume upside momentum.
Conversely, if buyers fail to sustain BTC price to the crucial support level, the market will resume selling pressure. BTC price will fall and retest or break the current support at $47,500. Further decline to $43,000 or $41,000 is possible if Bitcoin loses the $47,500 support. Presently the upward move is facing rejection at the $54,000 resistance zone.
Bitcoin indicator reading
BTC price is still below the 21-day and the 50-day SMAs. BTC/USD is in the bearish trend zone and capable of falling on the downside. It has risen to level 42 of the Relative Strength Index period 14. The market is below the centerline 50 which means further downsides as possible.
Technical indicators:
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $50,000 and $48,000
What is the next direction for BTC/USD?
Bitcoin’s recent upward correction is a positive one, but it faces resistance at $54,000. Meanwhile, the Fibonacci tool has indicated a further downward movement of prices. On April 18 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the market will fall to level 1.618 Fibonacci extension or the low of $41,423.1030. From the price action, the BTC price retested the $47.500 support twice before resuming upward.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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