- Bitcoin price is trading well above support near $56,700.
- On the upsides, there are also two major resistances lying at $57,000 and $58,000.
- Bitcoin’s daily chart shows an upward channel attempting to retest $57,000.
Bitcoin Price Prediction: General price overview
Bitcoin (BTC) is trading well above support near $56,700 and above the hourly 50-day simple moving average. The coin is forming a descending channel below $57,000 , where the next resistance lies.
However, a bullish trend line is taking shape with support near $56,895. Bitcoin soared above multiple resistances on Thursday and hit a monthly high of $58,000.
The bulls were not strong enough to sustain this price level , and therefore the price of Bitcoin corrected downwards , below $55,000. On Friday, the coin consolidated buyer action and recovered an upward momentum ; which saw it thrash several key resistance levels on the upsides and hit $57,000.
The upside did not last as the coin fell into a descending channel and slightly adjusted above the $56,500 price level on the daily chart. Unfortunately, Bitcoin bulls are facing alot of resistance at $56,700 and 56,900, which is making it difficult to break above this price level.
On the upsides, there are also two major resistances lying at $57,500 and $58,000; which are making it quite difficult for the bulls to set another ATH.
On the daily chart, we see Bitcoin attempt to recover from yesterday’s 5% pullback. This pullback prevented the coin from surpassing the currently standing all time high. The bulls are hoping to win against the upward resistance at $58,000.
Yet, technicals are however indicating a bearish divergence by the end of March. The MACD, RSI and the bolinger bands are all issuing overbought conditions.
The good news is most of the pullbacks surrounding the bitcoin market are usually short-lived. As a result, some traders have been buying the dip whenever they see one and at whatever price they see.
A glassnode analysis goes on to indicate that nervous newbie bitcoin traders have been profiling from the pullbacks since the start of 2021.
On the other hand, long-term cryptocurrency hodlers appear to not have sold their bitcoin investments despite the 2021 all time high.
Again , short term indicators are rather unclear whether bullish or bearish. Because what would seem like a measly downward correction of 5% might end up creating a butterfly effect, which then eventually overturns the price action and entire market sentiment in general.
Bitcoin price movement in the past 24 hours
Bitcoin’s daily chart shows an upward channel attempting to retest $57K. The coin has been struggling with various price hurdles at $56.2K, $56.6K and was rejected at $57K. Bitcoin is currently trading at $56,654 against the USD.
There is main support at $56,000. Bitcoin bulls have to be aware that a slight drop below $56,000 will invite further losses towards yesterday’s support of $55,000. If they fail to sustain the current support, they risk even a greater reversal that might result in monthly lows.
Bitcoin 4-hour chart
A bullish trendline is forming with support near $56,548 on the 1-hour chart. There is a lot of resistance near $56,640 on the 4 hours chart. However, BTC is trading above the $56.5K support and the 100 -hourly SMA. Our take is if it manages to break above $56,700, the doors might open for a gradual ascending channel.
Bitcoin price prediction: Conclusion
Bitcoin will continue with this uptrend for the upcoming days. We hope the coin will break resistances around $57K and $58K. The price went on to set a monthly high of $58,140 and chances of correcting lower from the current price support of $55K are narrow. Bulls are hoping for a breakout above $57,500, which would enable them to push the price to their $58,000 target and even beyond.