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Bitcoin price support at $56,000 crucial for takeoff beyond $60,000

Bitcoin

coingape.com 06 May 2021 05:45, UTC
  
Reading time: ~2 m

Bitcoin has gradually and persistently worked on a recovery mission from $53,000. Various barriers were encountered along the path, including the 100 Simple Moving Average (SMA), the 50 SMA on the four-hour chart, and the critical seller congestion zone at $58,000.

In the meantime, the largest cryptocurrency dodders at $56,800 as bulls battle to overcome the resistance presented by the 200 SMA. On the downside, immediate support has been provided by the 50 SMA at $56,000.

Holding above the short-term support is key for sustaining the uptrend due to the stability exemplifies in the market. On the upside, a four-hour candlestick close above the 200 SMA would prove to investors that bulls are finally in control. As speculation increases for gains beyond $60,000, buying orders are bound to rise, adding to the tailwind force.

BTC/USD four-hour chart

BTC/USD price chart

The generally up-trending market appears to have been validated by the Moving Average Convergence Divergence (MACD) indicator. It follows the trend of an asset and measures its momentum. Traders use this indicator to identify positions to buy the dip and sell the bottom.

The MACD line crossing above the signal line is a call to buy while striking beneath the signal line implies time to sell. Currently, the MACD line is above the signal line; simultaneously, the indicator has settled above the midline. Therefore, the slightest resistance path is upward, as illustrated by the chart’s short-term technical levels.

Bitcoin intraday levels

Spot rate: $57,150

Trend: Bullish

Volatility: Low

Support: $56,000 and $53,000

Resistance: $58,000 and $60,000


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