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Bitcoin Struggles to Sustain Above $58,000 Support, Lacks Buyers at Higher Price Levels


coinidol.com 06 May 2021 20:00, UTC
Reading time: ~2 m

Bitcoin price consolidates above $56,500 support after an unsuccessful attempt to breach the $58,000 resistance. Reclaiming the $58,000 support propels BTC price to resume upside momentum.

Bitcoin bulls fail to sustain the bullish momentum above the $58,000 support after making three attempts at the resistance. 

In other words, Bitcoin lacks buyers at higher price levels. Since May 1, buyers have made concerted efforts to resume upside momentum above the $58,000 support. In the first attempt, the market was repelled as the price fell to $56,000 low. Buyers again pushed the BTC price to $58,777 high which attracted further selling presumption. On May 3, buyers could not sustain the bullish momentum as Bitcoin plunged to a $53,000 low. For the past 48 hours, BTC/USD has recovered from the downward correction but it is consolidating above the $56,500 support. A rally to a $60,000 high is likely if buyers clear the $58,000 resistance and the bullish momentum is sustained. 

Bitcoin indicator reading  

BTC price has been fluctuating below and above the moving averages. The market will rise if the price breaks above the moving averages. Today, the market is rising as price breaks above the SMAs. Bitcoin is at level 56 of the Relative Strength Index period 14. It indicates that the price is in the uptrend zone and capable of rising on the upside.

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?

BTC/USD is likely to move on the upside as the price breaks above the moving averages. On May 1, the BTC price was resisted at the $58,000 high as the price resumed a downward move. A retraced candle body tested the 78.6% Fibonacci retracement level. The retracement implies that Bitcoin will rise to level 1.272 Fibonacci extension or the high of $59,837. 30. Later, Bitcoin will reverse to 78.6% Fibonacci retracement level where it originated.

Disclaimer. This analysis and forecast are the author’s personal opinions and 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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